A transflective display device has an upper substrate, a lower substrate and a liquid crystal layer interposed therebetween. A reflective electrode layer is formed overlying the inner surface of the lower substrate to serve as a reflective area of a pixel electrode. A transparent electrode layer is formed overlying the inner surface of the lower substrate, in which the transparent electrode layer not covered by the reflective electrode layer serves as a transmissive area of a pixel electrode. A first polarizer is formed overlying the outer surface of the upper substrate. A second polarizer is formed overlying the outer surface of the lower substrate. An optical compensation plate is formed between the second polarizer and the lower substrate.