In this paper, we have studied on the optimal design of the optical compensation film for the TN-LCDs. To have wide viewing angle panels, several methods such as multi-domain method, optical path method, and phase compensation method have been proposed. Among these methods, this paper focused on the phase compensation method. In the phase compensation method, the phase retardation generated from the optical birefringence for the off-axis incident is compensated by using optical films with refractive anisotropy. To compensate the phase retardation of the TN-LCDs, we have proposed design concept for the biaxial optical films and analyzed the optical performance for the proposed structures. The calculation of the dynamic motion of the liquid crystals was based on the Ericksen-Leslie theory and the optical performance of the TN-LCD was calculated from the Extended Jones Matrix Method. From the results, we have confirmed that the optical characteristics of the TN-LCDs with the biaxial films have been improved considerably compared with the TN-LCDs compensated by the combination of the uniaxial films.