There are provided an apparatus and method for performing dynamic capacitance compensation (DCC) in a liquid crystal display (LCD). The DCC apparatus includes: a first line buffer reading and temporarily storing pixel values of an image for each line; an encoder transforming and quantizing the pixel values stored for each line for each block and generating bit streams; a memory storing the generated bit streams; a decoder decoding the bit streams stored in the memory for the each block and outputting the decoded bit streams; a second line buffer reading and temporarily storing the decoded pixel values for the each block; and a compensation pixel value detector detecting a compensation pixel value for each pixel, from pixel value differences between pixel values of a current frame stored in the first line buffer and pixel values of a previous frame stored in the second line buffer. Therefore, it is possible to reduce the number of pins of a memory interface by reducing the number of memory device for storing pixel values of image data, required for performing DCC of a LCD, resulting in minimizing a chip size, and to enhance compression efficiency without visual deterioration in images.