This paper proposes the designing of a effective image processing algorithms for removal of shadows generated around the image. Usually Side Scan Sonar is used for ocean investigations like surveys for marine archaeology, mining, drowned objects at the sea floors,pipeling,underwater communications, fisheries research, environmental studies etc.This paper make use of Fuzzy C-Means Clustering for shadow region detection and Inpainting algorithm to compensate the shadow region. Thus clear image can be obtained.