A method and apparatus for processing a digital image signal to correct for the effect of hand tremble in a digital photographing apparatus, such as a digital camera or video recorder. The method and apparatus perform the operations of generating original image data, dividing the original image data into at least one block and generating processed image data in which an average of the original image data is calculated according to the block, and decreasing a first contribution of the original image data or increasing a second contribution of the processed image data, as a difference of pixels or blocks between the original image data and the processed image data nears to a boundary.