An automatic parking system and method are provided. The automatic parking system includes a camera processor that acquires images around a subject vehicle, converts the acquired images into externalimages and synthesizes the external images. A sensor processor measured spaced distances between the subject vehicle and surrounding vehicles. A parking space recognizing unit periodically receives the spaced distances and the external images and comparing the consecutive external images with the spaced distances using an image recognition technology to recognize parking areas. A controller calculates a moving path between a current position of the subject vehicle and an optimal parking area and operates the subject vehicle based on the moving path.