A vehicle-periphery image generating apparatus and an image switching method which provides a rear view image displayed additionally from a vehicle-periphery image is presented at an adequate timing with eye-friendliness. There are provided a parallel detector for detecting that a vehicle is oriented substantially parallel to a parking space, an approach detector for detecting that at least part of the vehicle is entering the parking space, and a display controller for switching display of an image from a vehicle-periphery image to a rear view image when the vehicle is oriented substantially parallel to the parking space and at least part of the vehicle is approaching into the parking space, so that the vehicle-periphery image and the rear view image are switched and displayed as needed according to the state of the vehicle with respect to the parking space and images optimal for respective scenes are displayed over the full screen.