This paper proposes a method for detecting visual pixel defects on color liquid crystal displays using an image processing system. The types of pixel defects of liquid crystal displays are bright dots which are always lighted and dark dots which are always extinguished. Bright dots are detected by a local image binarization method using distribution of brightness on a display. Thresholds for binarization process are set by each pixel using a linear complementary method. Dark dots are detected by the local image binarization method after multiple one-dimensional image differential operations. A relationship between brightness and a conspicuous ratio is evaluated about bright dots for transforming the original measured brightness into the value which is related with a conspicuous ratio. Detectable ratio for bright dots reached to 96.2%, and for dark dots reached to 93.8% by the developed inspection system and methods.