An image processing circuit and an image processing method are provided. The image processing circuit comprises a full search engine and a frame rate conversion (FRC) engine. The full search engine executes a full search to generate a sum of sum of absolute difference (SAD) distribution according to the reference image and the current image. The FRC engine analyzes a scene characteristic from the current image according to SAD distribution. The FRC engine adjusts at least one of the control parameters according to the scene characteristic. The FRC engine generates an interpolated image according to the reference image, the current image and the control parameters.