Disclosed are a method and an apparatus for generating a panoramic image based on an image quality. The method of generating a panoramic image includes extracting a matching point to connect a base image captured by a first camera and a reference image captured by a second camera, geometrically transforming the reference image by determining a homography between the base image and the reference image, determining a change in image quality of the geometrically transformed reference image, and generating a panoramic image in which the geometrically transformed reference image is connected to the base image based on the determined change in image quality.