An image pickup apparatus permits easy setting of an optimum hue of an image to be shot by displaying a hue chart in the image pickup apparatus, thereby enabling the user to visually check each hue set in the process of selecting an optimum hue according to the taste or intention of the user or the place where he or she is located. The user arbitrarily designates a tracing range of white balancing. Then, the tracing range parameters for achromatic color determination are selected on the basis of the designated tracing range. White balancing is carried out on an image signal output from an imaging element using the selected tracing range parameters. Based on the image signal that has been subjected to the white balancing, a color signal and a luminance signal are generated and output, thereby enabling the user to set or check an achromatic color determining range for white balancing.