A stereo enhancement system processes the difference signal component generated from a pair of left and right input signals to create a broadened stereo image reproduced through a pair of speakers or through a surround sound system. Processing of the difference signal component occurs through equalization characterized by amplification of the low and high range of auditory frequencies. The processed difference signal is combined with a sum signal, generated from the left and right input signals, and the original left and right input signals to create enhanced left and right output signals.