A video encoding apparatus and a video encoding method are provided. The video encoding apparatus includes an integer-pel motion estimation (IME) circuit, a temporal noise reduction (TNR) circuit, a fractional-pel motion estimation (FME) circuit and an encoding circuit. The IME circuit provides the first motion vector, the error value and the co-located error value of the current block in the current frame to the TNR circuit. By using the first motion vector, the error value and the co-located error value of the current block in the current frame, the TNR circuit performs the temporal filtering process on the current block in an original image data to produce a denoised image data to the FME circuit.