In this paper we discuss regularization of images that take their value in matrix Lie groups. We describe an image as a section in a principal bundle which is a fibre bundle where the fiber (the feature space) is a Lie group. Via the scalar product on the Lie algebra, we define a bi-invariant metric on the Lie-group manifold. Thus, the fiber becomes a Riemannian manifold with respect to this metric. The induced metric from the principal bundle to the image manifold is obtained by means of the bi-invariant metric. A functional over the space of sections, i.e., the image manifolds, is defined. The resulting equations of motion generate a flow which evolves the sections in the spatial-Lie-group manifold. We suggest two different approaches to treat this functional and the corresponding PDEs. In the first approach we derive a set of coupled PDEs for the local coordinates of the Lie-group manifold. In the second approach a coordinate-free framework is proposed where the PDE is defined directly with respect to the Lie-group elements. This is a parameterization-free method. The differences between these two methods are discussed. We exemplify this framework on the well-known orientation diffusion problem, namely, the unit-circle S (1) which is identified with the group of rotations in two dimensions, SO(2). Regularization of the group of rotations in 3D and 4D, SO(3) and SO(4), respectively, is demonstrated as well.