A method of forming transflective LCD panel includes forming a compensation material having reactive liquid crystal monomers, thermal initiators and a solvent on a first substrate. Then, a first heating process is performed on the compensation material to remove parts of the solvent and then a photo-polymerizing process is performed, and parts of the compensation material disposed in a reflective region are turned into birefringent zones. Moreover, a second heating process is performed, in which the first substrate is kept in a predetermined temperature for a predetermined time, and thereafter nitrogen gas flows in to the chamber to form a non-oxygen condition. Accordingly, parts of the compensation material disposed in a transmission region are turned into isotropic zones. The predetermined temperature of the second heating process is higher than the cleaning point of the reactive liquid crystal monomers.