An image processing apparatus and an image processing method are disclosed by which an image correction process for a false color such as a purple fringe can be executed efficiently while excessive reduction of the saturation is prevented to produce image data of a high quality. A saturation reduction rate corresponding to each pixel is calculated, and saturation reduction of the pixel is executed based on the saturation reduction rate. Then, saturation correction is executed so that the difference between the hue of the pixel whose saturation has been reduced and a surrounding reference pixel may be reduced. Further, a surrounding pixel to be referred to in the saturation correction process is selected along a scanning line.