Backlight dimming is a powerful method to reduce power consumption of LED-LC displays. However, there remains a problem to preserve perceived quality while reducing backlight luminance. Distortion of backlight dimming can be classified to three types: clipping, leakage and quantization. The former two distortions have been widely discussed in the literature, but the quantization noise is generally ignored. This paper presents a LC compensation framework which exploits error diffusion to shape the quantization noise. Simulation results show that the proposed approach is efficient to achieve the goal.