An image pickup apparatus that is capable of preventing degradation of quality of an image obtained. An insertion-extraction unit inserts and extracts a filter of which transmittance for infrared light is higher than the transmittance for visible light. A computation unit computes an object distance between the image pickup apparatus and an object. An evaluation unit evaluates an image quality based on at least a sharpness in an image including a picked up object image. A control unit controls the insertion-extraction unit so as to insert or extract the filter based on at least one of the image quality and the object distance.