An image processing apparatus that blurs a picked-up image based on distance information on a subject, comprises a restoration kernel acquisition section that acquires a restoration kernel as a kernel for eliminating degradation of an image; a blur kernel acquisition section that acquires a blur kernel as a kernel for blurring the image; a compound kernel acquisition section that acquires a compound kernel obtained by merging the restoration kernel with the blur kernel; and an image processing section that eliminates the degradation of the picked-up image and blurs the picked-up image by using the compound kernel.