An image processing method to obtain a high sense of depth or high stereoscopic effect for an image and a display device utilizing the method are provided. Image data of an image is separated into image data of a plurality of objects and a background. A feature amount is obtained from the image data of each object, so that the objects are identified. The relative distance between viewer's eye and any of the objects is determined by the data of the sizes of the objects in the image and the sizes of the objects stored in the database. The image data of each object is processed so that an object with a shorter relative distance is enlarged. The image data of each object after image processing is combined with the image data of the background, so that a sense of depth or stereoscopic effect of an image is increased.