The significance of license plate image restoration goes beyond the preprocessing stage of License Plate Recognition (LPR) systems, as it also serves various purposes, including increasing evidential value, enhancing the clarity of visual interface, and facilitating further utilization of license plate images. We propose a novel diffusion-based framework with character-level guidance, CharDiff, which effectively restores and recognizes severely degraded license plate images captured under realistic conditions. CharDiff leverages fine-grained character-level priors extracted through external segmentation and Optical Character Recognition (OCR) modules tailored for low-quality license plate images. For precise and focused guidance, CharDiff incorporates a novel Character-guided Attention through Region-wise Masking (CHARM) module, which ensures that each character's guidance is restricted to its own region, thereby avoiding interference with other regions. In experiments, CharDiff significantly outperformed the baseline restoration models in both restoration quality and recognition accuracy, achieving a 28% relative reduction in CER on the Roboflow-LP dataset, compared to the best-performing baseline model. These results indicate that the structured character-guided conditioning effectively enhances the robustness of diffusion-based license plate restoration and recognition in practical deployment scenarios.

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