A method for the radiometric correction of wide field-of-view airborne imagery has been developed that accounts for the angular dependence of the path radiance and atmospheric transmittance functions to remove atmospheric and topographic effects. The first part of processing is the parametric geocoding of the scene to obtain a geocoded, orthorectified image and the view geometry (scan and azimuth angles) for each pixel as described in part 1 of this jointly submitted paper. The second part of the processing performs the combined atmospheric/ topographic correction. It uses a database of look-up tables of the atmospheric correction functions (path radiance, atmospheric transmittance, direct and diffuse solar flux) calculated with a radiative transfer code. Additionally, the terrain shape obtained from a digital elevation model is taken into account. The issues of the database size and accuracy requirements are critically discussed. The method supports all common types of imaging airborne optical instruments: panchromatic, multispectral and hyperspectral, including fore/aft tilt sensors covering the wavelength range 0.35-2.55 m and 8-14 m. The processor is designed and optimized for imaging spectrometer data. Examples of processing of hyperspectral imagery in flat and rugged terrain are presented. A comparison of ground reflectance measurements with surface reflectance spectra derived from airborne imagery demonstrates that an accuracy of 1-3% reflectance units can be achieved.