An interpolation image generation method and apparatus for adaptively converting a frame rate based on a motion vector, and a display device having an adaptive frame rate conversion function are provided. The interpolation image generation method includes an interpolation image generation process calculating motion vectors from a previous image unit and a subsequent image unit that are continuous and generating an interpolation image using the motion vectors; a motion error boundary detection process detecting an area, in which a motion error determined from the motion vectors is greater than a predetermined value, as a boundary area of the interpolation image; and a motion compensation process compensating for a motion error inside the detected boundary area based on a dominant direction of the motion vectors using at least one of the previous image unit and the subsequent image unit.