An example of a game apparatus as an image processing apparatus includes a CPU, and the CPU controls a movement, etc. of a player object according to an instruction from a player. In a case that a predetermined condition is satisfied, a two-dimensional surface is displayed within a virtual three-dimensional space. When the player moves a first controller, a two-dimensional image is depicted on the two-dimensional surface in response thereto. Then, it is determined whether or not the depicted two-dimensional image is a predetermined image. If it is determined that the two-dimensional image is the predetermined image, a three-dimensional object corresponding to the predetermined image appears, and the two-dimensional surface and the two-dimensional image depicted thereon are erased.