A motion compensation de-interlacing image processing apparatus is provided. The apparatus includes a motion compensation module, a still compensation module, a motion detection module, and a de-interlacing blending module. The motion compensation module generates a motion compensation pixel according to at least one of a current field, a previous field, and a next field of a target pixel to be interpolated. The still compensation module generates a still compensation pixel according to the previous field and the next field of the target pixel. The motion detection module determines a motion index according to the previous field and the next field of the target pixel. The de-interlacing blending module generates the target pixel by weighted averaging the motion compensation pixel and the still compensation pixel according to the motion index.