The present disclosure relates to image processing apparatus and method that can suppress a reduction of subjective image quality. A process related to hiding of predetermined data with respect to data regarding an image is executed, and hiding is skipped in a case where data in a spatial domain of the image is to be encoded. The data regarding the image for which the hiding is performed or the data regarding the image for which the hiding is skipped is encoded. The present disclosure can be applied to, for example, an image processing apparatus, an image encoding apparatus, an image decoding apparatus, and the like.