A circuit for compensating color shift of a color sequential display method includes an image processing unit and a timing control circuit. The image processing unit includes a gray level generation unit, a pre-processing unit, and a color compensation unit. The gray level generation generates first gray levels of red, green, and blue sub-pixels. The pre-processing unit generates a pure color uniformity of a display panel and a color compensation value. The color compensation unit generates a color saturation of a pixel, a compensation difference of the pixel, and gray levels of red, green, and blue sub-pixels of a compensated pixel. The timing control circuit sequences the gray levels of the red, green, and blue sub-pixels of the compensated pixel according to the color sequential display method, and outputs the gray levels of the red, green, and blue sub-pixels of the compensated pixel to the display panel.