A fisheye correction with perspective distortion reduction method used for saving memory space and reducing perspective distortion includes a coordinate transformation function, a fisheye distorted image and a fisheye corrected image, the fisheye corrected image includes a plurality of pixels, for each pixel of the plurality of pixels, orderly calculating a coordinate value in the fisheye distorted image, and according to the coordinate value, calculating a pixel value of the fisheye corrected image via an interpolation method, wherein the coordinate transformation function includes a fisheye correction coordinate transformation, a perspective distortion reduction coordinate transformation and an image crop and scale coordinate transformation.