This paper presents contrast enhancement algorithms based on fuzzy contextual information of the images. We introduce fuzzy similarity index and fuzzy contrast factor to capture the neighborhood characteristics of a pixel. A new histogram, using fuzzy contrast factor of each pixel is developed, and termed as the fuzzy dissimilarity histogram (FDH). A cumulative distribution function (CDF) is formed with normalized values of FDH and used as a transfer function to obtain the contrast enhanced image. The algorithm gives good contrast enhancement and preserves the natural characteristic of the image. In order to develop a contextual intensity transfer function, we introduce a fuzzy membership function based on fuzzy similarity index and coefficient of variation of the image. The contextual intensity transfer function is designed using the fuzzy membership function to achieve final contrast enhanced image. The overall algorithm is referred as the fuzzy contextual contrast-enhancement (FCCE) algorithm. The proposed algorithms are compared with conventional and state-of-art contrast enhancement algorithms. The quantitative and visual assessment of the results is performed. The results of quantitative measures are statistically analyzed using t-test. The exhaustive experimentation and analysis show the proposed algorithm efficiently enhances contrast and yields in natural visual quality images.