Provided are a display device with integrated touch screen and a method of driving the same that reduce a touch error due to the switch of an image and thus enhance touch sensing performance. The display device includes a display panel, a driver IC, and a touch IC. The driver IC respectively supplies a plurality of data voltages, corresponding to frame-unit image data, to a plurality of pixels formed in the display panel, and calculates average luminance of a plurality of touch blocks. Each of the touch blocks includes a certain number of pixels. The touch IC supplies a touch driving signal to each of the touch blocks, compensates for a capacitive change in the pixels due to switch of an image, and senses a touch.