In order to solve the problem of high non-uniformity of LED display images which is caused by the edges of LED display panel during module splicing, transitional compensation algorithm is proposed by improving the existed correction technique named the correction technique based on CCD. First, introduce the three development stages of the LED display panel. Then, the realization progress of the transitional compensation algorithm is described in detail after elaborating the principle of transitional compensation. Finally, the algorithm is emplaned in a LED video control system to control the LED display panel whose display area is 1280×960, and which is spliced by 30×20 LED modules whose size are 64×32. Experimental results show that this algorithm is able to reduce non-uniformity of LED display images from 29.3% before correcting to 0.95%.