In this paper, we present an algorithm for the restoration of images with an unknown, spatially-varying blur. Existing computational methods for image restoration require the assumption that the blur is known and/or spatially-invariant. Our algorithm uses a combination of techniques. First, we section the image, and then treat the sections as a sequence of frames whose unknown PSFs are correlated and approximately spatially-invariant. To estimate the PSFs in each section, phase diversity is used. With the PSF estimates in hand, we then use a technique by Nagy and O'Leary for the restoration of images with a known, spatially-varying blur to restore the image globally. Test results on star cluster data are presented.