Abstract: More realistic and accurate models of the scene illumination and object reflectance can greatly improve the quality of many computer vision and computer graphics tasks. Using such model, a more profound knowledge about the interaction of light with object surfaces can be established which proves crucial to a variety of computer vision applications. In the current work, we investigate the various existing approaches to illumination and reflectance modeling and form an analysis on their shortcomings in capturing the complexity of real-world scenes. Based on this analysis we propose improvements to different aspects of reflectance and illumination estimation in order to more realistically model the real-world scenes in the presence of complex lighting phenomena (i.e, multiple illuminants, interreflections and shadows). Moreover, we captured our own multi-illuminant dataset which consists of complex scenes and illumination conditions both outdoor and in laboratory conditions. In addition we investigate the use of synthetic data to facilitate the construction of datasets and improve the process of obtaining ground-truth information.