A driving circuit of a light emitting diode (LED) and a ghost phenomenon elimination circuit thereof are disclosed. The ghost phenomenon elimination circuit which includes a ghost phenomenon elimination unit and a counter unit may determine a black insertion period according to a gray scale clock signal, and output an enable signal to the ghost phenomenon elimination unit during the black insertion period. The ghost phenomenon elimination unit may pull up the voltage levels at current driving terminals of the driving circuit so as to prevent the ghost phenomenon from occurring.