A digital imaging apparatus for creating a panorama image and a method thereof, wherein the digital imaging apparatus comprises a capture part for consecutively capturing a plurality of images, an image information detection part for detecting image information regarding the plurality of images output from the capture part, respectively, and a panorama image generation part for converting the plurality of images based on the image conversion information. The image conversion information is determined by selecting one set of the plurality of image information output from the image information detection part, converting the image information regarding the plurality of images output from the capture part using the selected image information, and combining the converted images, thereby creating a natural-looking panorama image.