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This Paper presents a signal processing system for newly developed high-resolution digital camera, MX-700. This camera is composed of a 1/2 inch, 1.5M pixels CCD, dual RISC processors, SmartMedia and a digital signal processor LSI. The digital signal processor includes AE/AWB/AF function, high-resolution signal processing, peripherals for the RISC processor, digital encoder, D/A converter and SmartMedia controller. The LSI achieves compact, low power and high-resolution image acquisition system. The image data is recorded on SmartMedia which is small, thin, inexpensive and suitable for the digital camera. The RISC processor includes an internal DRAM and achieves high-speed operation. The outlines and main features of the signal processing system are described