According to one embodiment, a sheet handling apparatus includes a conveying path to convey a sheet, a processing portion to perform a predetermined process on the sheet while conveying the sheet on the conveying path, a separable roller pair that is arranged at a certain distance from the processing portion on an upstream side or a downstream side in conveying direction, the separable roller pair being adapted to hand over the sheet between the conveying path and the processing portion by holding the sheet with a nip and rotating, a separating mechanism to separate the separable roller pair, and a controller that controls the separating mechanism such that the separable roller pair is separated before or after processing is started with the processing portion on a sheet that is conveyed on the conveying path.