This document presents an automatic method for detecting and correcting red-eye in digital images. It begins with an overview of red-eye effect and existing solutions, then describes the proposed approach which uses iris segmentation. The approach has two main parts: red-eye detection using skin segmentation, edge detection, iris tracking and confirmation; and red-eye correction by reconstructing the red component. The method achieved 92% accuracy on a test set of 50 images and offers improvements over existing solutions such as being simple, fast and not requiring face detection. Future work could expand it to detect red-eye in animals.