There is provided an image processing device and method capable of suppressing a decrease in subjective image quality. A size of a current block for a prediction process is set according to a size of a peripheral block situated on a periphery of the current block. The prediction process is to generate a predicted image of an image to be encoded. An intra prediction process is performed on the current block that has been set and the predicted image is generated. The image to be encoded is encoded using the predicted image that has been generated. The present disclosure can be applied to, for example, an image processing device, an image encoding device, or an image decoding device.