Abstract: An image processing system processes digital image files. The system organizes the images into sets of related images. The system stores information relating to various content, contextual and/or topical themes. The system's auto-theming engine matches an image set to one of various stored themes. Each theme is associated with backdrop images contextually matched to the assigned theme. The system stores information relating to various image layout templates. The system's auto-layout engine applies image layout templates defining positioning for the images in a foreground layer to be applied over a background layer comprising the backdrop image(s). The auto-layout engine selects and positions the images within the templates to create a compilation comprising the images arranged on a background that includes contextually-relevant imagery. The compilation may be designed for printing as a physical book (photobook) or poster, or may be configured as an electronic book, webpage/website, etc.