An image pickup apparatus which can carry out proper white balance adjustment even at the time of bounce flash shooting. A white balance adjusting circuit uses a first correction value calculated based on shot image data as a white balance correction value when it is detected that no light has been emitted from the light emitting device, and uses a second correction value for shooting with light emission as the white balance correction value when it is detected that light has been emitted from the light emitting device. The white balance adjusting circuit uses a third correction value different from the second correction value as the white balance correction value, when a white balance photography determining section detects that the bounce flash photography has been carried out.

 
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