A method of displaying a dynamic halftone image on a display panel made of pixels divides each frame of the image into subframes and turns on and off the subframes. The method includes the steps of finding a line of pixels that simultaneously display a specific intensity level in a frame and another specific intensity level in the next frame, counting the number of pixels in the line, selecting corrective pulses, which turn on/off corresponding subframes to enable/disable corresponding intensity levels, according to the counted number and a change in the specific intensity levels between the frames, and adjusting original display signals for the pixels in the line according to the corrective pulses, respectively. The method eliminates halftone disturbance and false color contours from the image even if the moving speed of the image on the display panel is high.