An image processing apparatus and an image processing method processing a graphic image are provided. An image processing apparatus including: a display unit; a first image output unit which outputs a first image signal; a second image output unit which outputs a second image signal and a transparency information with respect to the second image signal; an image mixing unit which outputs a third image signal mixing the first image signal and the second image signal by using the transparency information; an image processing unit which processes the third image signal to output to the display unit; and a control unit which extracts the transparency information from the second image output unit, and outputs a position information about which the second image signal is displayed in the display unit based on the extracted transparency information to the image processing unit.