We propose a 3D display system which can present real scenes with realistic motion parallax. In the sensing part, a scene is observed by using a camera matrix. An excellent stereo algorithm SEA recovers the depth information of the scene with the density and the sharpness required for high quality image generation. In the display part, 2D images from the viewing position of the observer are generated and presented with proper motion parallax. A novel algorithm to determine the view parameters suitable for reproducing the motion parallax on a fixed screen and an image generation algorithm which can cope with arbitrary viewing positions are described. Evaluation of the proposed algorithms has been done by using the prototype system.