An image processing apparatus and method for a high dynamic range effect includes a conversion circuit, a specular detection circuit, and a blending circuit. The conversion circuit converts first pixel data of the current pixel of a current frame to a second pixel data, wherein a luminance of the second pixel data is lower than a luminance of the first pixel data. The specular detection circuit detects a specular degree of the current frame to produce a specular map, wherein the specular map includes a specular degree value of a current pixel. The blending circuit blends the first pixel data and the second pixel data according to the specular degree value of the current pixel to obtain blended pixel data of the current pixel.