An image processing apparatus and an image processing method capable of further improving coding efficiency while suppressing an increase in a load. For example, in a case a macro block with a size of 16×16 pixels or less used in AVC is a coding process target, a motion search and compensation unit performs a motion search using an image with the original size which is not reduced. In addition, for example, in a case where an extended macro block with a size larger than 16×16 pixels is a coding process target, the motion search and compensation unit performs a motion search using a reduced image.