Disclosed is a display device together with a method of modifying image signals. The display device includes a plurality of pixels with first and second pixels, and an image signal modifier for generating a modified image signal by modifying the input image signal of the first pixel based on the previous image signal of the first pixel and the input image signal of the second pixel. Dynamic capacitance compensation is made for a pixel where the gray variation thereof with respect to the pixels neighboring thereto is low, but over-compensation that is greater than the dynamic capacitance compensation is made for a pixel where the gray variation thereof with respect to the pixel neighbors is high, thereby decreasing the blurring, and preventing the image quality from being deteriorated.