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The overdrive technique has been popularly used to alleviate the motion blur on liquid-crystal display (LCD) by shortening the response time of the liquid crystal. However, this technique requires a large frame buffer to store the previous frame as a reference. In this paper, we propose a novel block truncation coding based on the vector quantizer for the color image compression in LCD overdrive. Due to the constant output bit-rate and the low computational complexity, the proposed method is suitable for the hardware implementation in LCD overdrive. Experimental results show that the proposed method achieves higher compression ratio as well as better visual quality as compared with the conventional methods.