Image processing apparatus and image processing method including an image separation processing section for separating an inputted image signal into a transparent image portion having transparency and a background image by detecting a pixel data common among a plurality of frames within the inputted image signal; a frame interpolator that performs frame interpolation using the separated background image; and a composition processing section for combining the frame-interpolated background image with the separated transparent image portion, wherein the frame interpolation is performed only to the background image so that the influence on the frame interpolation of the transparent image portion is reduced.