The present invention relates to an image processor and an image processing method for compensating gradation by effectively avoiding drop of partial contrast through application to an image processor such as television receiver, video tape recorder, television camera and printer or the like. A domain to which an input image data belongs is judged, for example, with reference to the low frequency element r (i, j) of the pixel value x (i, j) and the signal level x (i, j) of the image data forming an input image VT is compensated on the basis of the result of judgment r(i, j).