A method of operation of a graphical display system includes: generating a first registration point of an adaptive alignment image; calculating the adaptive alignment image having a first alignment point with a known location relative to the first registration point; projecting a projected image, having a first projected registration point, with the adaptive alignment image for displaying on a display surface with the first alignment point is a first projected alignment point on the display surface; calculating an adjustment for the adaptive alignment image using a relative location between the first alignment point and the first registration point, and the first projected alignment point and the first projected registration point, respectively; and creating an apparent image as an adaptive keystone corrected perception of the projected image by modifying the display image with the adjustment for displaying from a projector device.