A system and method of operation of an image processing system includes: a capture image sequence module for receiving an image sequence; a calculate iteration depth map module for calculating an iteration depth map and a zero-crossing array; a calculate median depth map module for calculating a median depth map and a depth difference map; a calculate variance depth map module for calculating a variance depth map; a calculate image depth map module for calculating an image depth map based on the iteration depth map, the zero-crossing array, the median depth map, the depth difference map, and the variance depth map; and a calculate display image module for calculating a display image based on the received images and the image depth map for displaying on a display device.