Apparatus and method for denoising of images generated by a rendering engine such as a ray tracing engine. For example, one embodiment of a system or apparatus comprises: A system comprising: a plurality of nodes to perform ray tracing operations; a dispatcher node to dispatch graphics work to the plurality of nodes, each node to perform ray tracing to render a region of an image frame; at least a first node of the plurality comprising: a ray-tracing renderer to perform ray tracing to render a first region of the image frame; and a denoiser to perform denoising of the first region using a combination of data associated with the first region and data associated with a region outside of the first region, at least some of the data associated with the region outside of the first region to be retrieved from at least one other node.