An image pickup apparatus which is capable of shooting a plurality of still images as instructed within a predetermined time period without a plurality of moving image encoders and a large-capacity memory. When a second still image shooting instruction has been received within a predetermined time period since a first still image shooting instruction was received, a moving image picked up before lapse of the predetermined time period after the second still image shooting instruction from a moving image shooting starting timing corresponding to the first still image shooting instruction is recorded as a sequence of moving images.