An image processing apparatus and image processing method, which enable suppression of coloring that occurs in image recovery processing for a RAW image are disclosed. Pixel interpolation processing is executed for a predetermined reference color component of the RAW image. For each color component other than the reference color component, a first color difference is obtained using a pixel value of the color component and a corresponding pixel value of the reference color component after the pixel interpolation processing. After applying the image recovery processing to each color component, a second color difference is obtained in a similar manner to the first color difference, and a pixel value is corrected according to the difference between the first and second color differences determined before and after the image recovery processing.