In this paper, we put forward an innovation method of high-speed and real-time error diffusion, which is based on Floyd-Steinberg algorithm. The design introduces LUT(look up table) and pipeline technology instead of complex multiplication operations, which accesses to the memory frequently. The whole design uses Verilog HDL language to program and Quartus ii 8.0 to synthesize and layout. At the end of the paper, we use a 48 pixel as an example, then simulate and verify it on the Modesim, which can prove the correctness of the design. Compared with the standard Floyed-Steinberg algorithm, this design can reduce the computation complexity, use a smaller memory space to exchange lots of logic units and increase the throughput of the algorithm. Besides, it has the advantages of good reconfigurability, simple hardware structure and high real-time.