According to one embodiment, an image erasing apparatus includes a sheet supply section, a discharge tray, a first conveying path, a reader, a second conveying path, an erasing unit and a switching section. A controller controls the first conveying path, the reader, the second conveying path, the erasing unit and the switching section depending on a selected mode. When the selected mode is an erasing mode, the sheet is conveyed on the first conveying path without being read by the reader, conveyed on the second conveying path where the image is erased by the erasing unit, and then conveyed to the discharge tray. When the selected mode is a reading mode, the sheet is conveyed on the first conveying path where the surface of the sheet is read by the reader, and then conveyed to the discharge tray without being conveyed on the second conveying path.