A de-warping processing method for digital images, used for restoring deformed images by outputting a first image at a first image window which the de-warping processing method has been performed on according to a partial region of a second image in a second image window, segmenting the first image window into a plurality of first blocks, segmenting the second image window into a plurality of second blocks according to an amount of the first blocks and locations of the first blocks, wherein the second image is a panoramic image; calculating a coordinate transformation parameter by a group of first vertex coordinate values of one of the first blocks and a group of second vertex coordinate values of corresponding one of the second blocks; transforming coordinate values of the first block into estimated coordinate values of the corresponding second block according to the coordinate transformation parameter; obtaining a pixel content value of a pixel corresponding to each of the estimated coordinate values in the second image window and writing the pixel content value into a pixel with the corresponding coordinate value in the first block; and processing all the first blocks for outputting the first image, wherein the step of calculating the coordinate transformation parameter comprises: defining a fourth block, which comprises the corresponding second block, and comparing an area of the fourth block with a first threshold value; if the area is not greater than the threshold value, calculating the coordinate transformation parameter; and if the area is greater than the threshold value, segmenting the first block into at least two sub-blocks, and an area comprising each of the at least two sub-blocks being not greater than the threshold value, each of the sub-blocks comprising two of vertexes of the first block; and comparing segmentation times of the first block with a second threshold value; if the segmentation times of the first block are greater than or equal to the second threshold value, stops the segmentation of the first block; wherein after the step of segmenting the first block into the at least two sub-blocks, the step of calculating the coordinate transformation parameter further comprises: through the at least two sub-blocks, calculating the coordinate transformation parameter according to vertex coordinate values of one of the two sub-blocks of the first block and vertex coordinate values of a corresponding sub-block of the second block. defining a fourth block, which comprises the corresponding second block, and comparing an area of the fourth block with a first threshold value; if the area is not greater than the threshold value, calculating the coordinate transformation parameter; and if the area is greater than the threshold value, segmenting the first block into at least two sub-blocks, and an area comprising each of the at least two sub-blocks being not greater than the threshold value, each of the sub-blocks comprising two of vertexes of the first block; and comparing segmentation times of the first block with a second threshold value; if the segmentation times of the first block are greater than or equal to the second threshold value, stops the segmentation of the first block; wherein after the step of segmenting the first block into the at least two sub-blocks, the step of calculating the coordinate transformation parameter further comprises: through the at least two sub-blocks, calculating the coordinate transformation parameter according to vertex coordinate values of one of the two sub-blocks of the first block and vertex coordinate values of a corresponding sub-block of the second block.