An image processing apparatus of the present invention comprising (a) a first signal processing circuit for applying gamma correction to an n-bit (n: a natural number) digital signal inputted as a video signal and for converting the n-bit digital signal into an m-bit (m>n, m: a natural number) digital signal, and (b) a second signal processing circuit for adding a noise signal, which is used for pseudo contour reduction, into the m-bit digital signal from the first signal processing circuit and for outputting a Q-bit (Q: a natural number) digital signal, which is obtained from rounding off a less significant (m−Q) bit (Q≦n) from the m-bit digital signal, to a display section.