A display device that includes an encoder circuit, a decoder circuit and an overdrive circuit is introduced. The encoder circuit includes a prediction circuit, a quantization circuit, and a bitstream coding circuit. The prediction circuit performs a prediction operation on a first image frame to generate a second image frame. The quantization circuit performs a quantization operation on the second image frame based on a quantization parameter to generated a quantized image frame. The bitstream coding circuit encodes the quantized image frame to generate an encoded bit stream. The quantization parameter is determined according to a grey level of a pixel in the second image frame. The decoder circuit decodes the encoded bit stream to generate a reconstructed image frame. The overdrive circuit generates an overdrive image frame to be displayed on a display panel based on a third image frame and the reconstructed image frame.