A liquid crystal display device and a method of compensating for a luminance point defect of the liquid crystal display device. After a detective luminance point pixel is detected, a laser beam is irradiated from an excimer laser oscillator on a portion of a surface of one of glass substrates of a liquid crystal panel on which an illuminating light is incident, the portion being located on the same irradiation path of the illuminating light with the luminance point pixel. In this way, the portion is laseretched, thereby forming a rough surface in the portion. When such a panel is used in a projection device, the light transmitted through the luminance point pixel is scattered and so reduced. Accordingly, the defective luminance point pixel is inconspicuous to normal pixels around the defective luminance point pixel.