This invention relates to a three electrode liquid crystal display panel that is adaptive for AC-driving liquid crystal cells inclusive of three electrodes, and a driving method thereof.A three electrode liquid crystal display panel according to an embodiment of the present invention includes first and second pixel electrodes disposed on a first substrate with an insulating film therebetween; and a common electrode disposed in a second substrate which is bonded with the first substrate with a liquid crystal therebetween, and wherein the first pixel electrode selectively supplies a maximum voltage and a minimum voltage, the common electrode supplies a medium voltage between the maximum voltage and the minimum voltage as a reference voltage, and the second pixel electrode supplies a positive data voltage and a negative data voltage on the basis of the reference voltage in a range between the maximum voltage and the minimum voltage, thereby AC-driving the liquid crystal.