We proposed a method for reducing LCD motion blur in MPEG domain and analyzing the cause of LCD motion blur. The problem of LCD motion blur is caused by slow response time of liquid crystal and hold-type displaying method of LCDs. The proposed method uses MPEG motion vectors and frequency coefficients of DCT blocks to improve the motion blurs. First, we interpreted the aperture and response time effect of LCD in frequency domain then, modeled sharpening mask filters for the compensation. We confirmed the reduction of motion blurs in LCDs by a motion image simulator.