In this study, we concentrate on the hyperbolic smoothing technique for some sub-classes of non-smooth functions and introduce a generalization of hyperbolic smoothing technique for non-Lipschitz functions. We present some useful properties of this generalization of hyperbolic smoothing technique. In order to illustrate the efficiency of the proposed smoothing technique, we consider the regularization problems of image restoration. The regularization problem is recast by considering the generalization of hyperbolic smoothing technique and a new algorithm is developed. Finally, the minimization algorithm is applied to image restoration problems and the numerical results are reported.