An apparatus and method for correcting motion of an image, which occurs due to a shake of a hand or vibration of a system, considering the correlation between frames are provided for an image processing system, which performs motion estimation and compression on an input image signal, thereby increasing compression efficiency. The apparatus includes at least a frame memory and a motion estimator/corrector. The memory stores an input image signal as a current frame image. The motion estimator/corrector estimates a motion of an image within a predetermined motion estimation range in the current frame image on the basis of a previous frame image, detects an image area to be compressed from the current frame image, and provides the detected image area to be compressed as a current frame image area for normal motion estimation so that the motion of the input image signal can be corrected.