Provided are a digital image processing apparatus having improved hand-shake compensation performance by measuring a distance between the digital image processing apparatus and a subject to be photographed and performing hand-shake compensation by reflecting the measured distance, and a method of controlling the digital image processing apparatus. The method of controlling the digital image processing apparatus includes measuring a subject distance corresponding to a distance between a body of the digital image processing apparatus and a subject to be photographed; setting a first tuning coefficient for tuning hand-shake compensation according to the subject distance; sensing hand-shake that causes the body to shake; and compensating for the hand-shake by incorporating the first tuning coefficient.