A circuit dithers pixel data on a display, and includes a lookup table module, a dithering parameter decoder, a first adder, a second adder, and an overflow handling module. A lookup table of the lookup table module stores dithering parameters generated by encoding odd and even pixel dithering parameters. The dithering parameter decoder generates second and third dithering parameters corresponding to odd and even pixels from a first dithering parameter. The first adder generates a dithered odd pixel parameter according to the odd pixel parameter and the second dithering parameter. The second adder generates a dithered even pixel parameter according to the even pixel parameter and the third dithering parameter. The overflow handling module checks for overflow, and generates an output odd pixel parameter according to the dithered odd pixel parameter, and generates an output even pixel parameter according to the dithered even pixel parameter.