An image display apparatus and a color distortion compensation method are provided. The image display apparatus includes a detecting part which detects whether there is a color distortion in a block, using decoding information acquired from an incoming image and a pixel value of the incoming image, and a compensation part which compensates for the color distortion of the block when it is determined that the color distortion exists. Accordingly, it is possible to detect a color distortion in the block using the decoding information and pixel value acquired from the incoming image, and compensate for the color distortion of the block by performing pixel value adjustment and low pass filtering (LPF) when it is determined that the color distortion exists.