The present invention relates to an image processing device and method that enable generation of a highly precise prediction image using a small amount of control information.A motion compensation circuit 51 specifies a macroblock corresponding to a prediction image in part of reference frames using a motion vector supplied from a prediction mode determination circuit 41, reads an image thereof from a frame memory 19, and extracts it as a motion compensation image. A motion prediction circuit 52 reads, from a frame memory 122, at least one or more of the remaining reference frames, performs motion prediction of the motion compensation image MC0 supplied from the motion compensation circuit 51 in each frame, reads an image of a macroblock that matches or is similar to the motion compensation image MC0 from the frame memory 122, and extracts it as a motion compensation image. The present invention can be applied to, for example, an encoding device and a decoding device.