Embodiments include techniques that use color-shifting and luminance for creation and display of spatio-temporal dithered images. In one embodiment, adjacent pixels are color-shifted with respect to each other and the color values of the adjacent pixels are temporally alternated with color values of pixels in the group. In another embodiment, the luminance of group of adjacent pixels is determined and the luminance of the group is made more homogenous, spatially and temporally, by distributing color variations over a larger number of pixels so as to reduce the luminance difference between the pixel with the least luminance and the pixel with the greatest luminance. Individual color components (e.g., red, green, blue) may also be separated and used so that the color-shifts associated with each color component may be simultaneously present in different pixels.