An image blending apparatus and method thereof are provided. The image blending apparatus includes an image providing module providing a first image with a first overlap region and a second image with a second overlap region, and an image blending module generating a first gradient image of the first image and a second gradient image of the second image, calculating first distance weights of first pixels in the first overlap region of the first gradient image and second distance weights of second pixels in the second overlap region of the second gradient image, blending the first gradient image and the second gradient image into a blended gradient image according to the first distance weights of the first pixels and the second distance weights of the second pixels at respective corresponding positions, and restoring a blended image from the blended gradient image.