The present invention relates to an image processing apparatus and method that can improve encoding efficiency while preventing an increase in load.An extraction circuit 71 of a filtering prediction circuit 64 extracts motion compensation images for generating a prediction image in a high-resolution enhancement layer from reference frames in a low-resolution base layer. A filtering circuit 72 of the filtering prediction circuit 64 performs filtering, which involves upconversion and which uses analysis in the time direction, on a plurality of motion compensation images in the base layer extracted by the extraction circuit 71 to generate a prediction image in the enhancement layer. The present invention can be applied to, for example, an encoding apparatus and a decoding apparatus.