Plasma Display Panel (PDP) is required to be both the determination of white point of each gray level and the inverse gamma correction since no-balanced RGB cell and linear property of PDP, respectively. However, these two methods cause degradation of grey level representation and undesirable false contour in the dark areas on PDP. In this paper, we implemented real time image processor of the proposed error diffusion algorithm and unsharp masking operation to protect the blurring image caused by the error diffusion. Experimental results showed drastic improvements of gray level representation and reduction of undesirable false contour.