An electronic device may include an electronic display to display an image, based in part on display image data that indicates target luminance of the image using a first bit-depth, and a display pipeline. The display pipeline may include dither processing circuitry to determine a pixel cluster of multiple pixel groups of input image data that indicates target luminance using a second bit-depth greater than the first bit-depth. The dither processing circuitry may also determine a phase combination which associates a different dither phase to each of the pixel groups. The dither processing circuitry may also determine and apply a dither pattern and a dither phase to each pixel group to generate dithered image data corresponding with the display image data with the first bit-depth. The dither pattern may be based in part on the least significant bits of input image data of the pixel groups.