The present invention relates to an image processing apparatus having an automatic compensation function for an image obtained from a camera, and a method thereof, and provides an image processing apparatus having an automatic compensation function for an image obtained from a camera, the apparatus comprising: an automatic compensation pattern of which one or more can be provided in an arbitrary place near a camera; an input / output module which receives an image as an input from the camera and transmits the same to the image processing apparatus; and an image processing module which is a processing unit containing an algorithm for compensating for distortion of the image obtained from the camera, wherein the input / output module comprises an image input / output unit for transmitting / receiving data in between the camera and the image processing module, and a storage unit for storing information processed by the image processing module, and the image processing module comprises a distortion compensation unit, an image alignment estimation unit, and an image alignment generation unit, the distortion compensation unit extracting, from the received image, characteristic points of the automatic compensation pattern, estimating the absolute location and installation angle of the camera by using the information based on the extracted characteristic points, and performing lens distortion compensation by using an inner parameter stored in the storage unit, the image alignment estimation unit estimating, in the image, the camera installation location and rotational error as a change parameter by using information on the absolute location and installation angle of the camera estimated in the distortion compensation unit, and the image alignment generation unit compensating for the three-dimensional location and size of the image by using the change parameter estimated in the image alignment estimation unit.