This paper concerns the compensation of specular highlight for handheld image projectors. By employing a projector-camera configuration, where the camera is aligned with the viewer, the distortion caused by nonideal (e.g., colored, reflective) projection surfaces can be estimated from the captured image and compensated for accordingly to improve the projection quality. This works fine when the viewing direction relative to the system is fixed. However, the compensation becomes inaccurate when this condition changes, because the position of the specular highlight changes as well. We propose a novel method that, without moving the camera, can estimate the specular highlight seen from any position and integrate it with Grossberg’s radiometric compensation framework to demonstrate how view-dependent compensation can be achieved. Extensive results, both objective and subjective, are provided to demonstrate the performance of the proposed algorithm.