A liquid crystal display (LCD) device and a method of driving the LCD device. The LCD device includes a display panel having a plurality of pixels, a gamma voltage generating unit, and a source driver. The pixels are defined by a plurality of data lines and a plurality of gate lines that cross each other. The gamma voltage generating unit generates a first gamma voltage at a higher voltage level than that of a target gamma voltage determined in advance based on a particular gradation and a second gamma voltage at a lower voltage level than that of the target gamma voltage. The source driver converts digital image data to analog image data by using the first gamma voltage and the second gamma voltage and displays the analog image data on the display panel using a dot inversion method.