The overdrive technique is widely used to eliminate motion blur in liquid-crystal displays (LCDs). However, this technique requires a large frame memory to store the previous frame. A reduction in the frame memory requires an image compression algorithm suitable for real-time data processing. In this paper, we present an algorithm based on multimode-color-conversion block truncation coding (MCC-BTC) to obtain a constant output bit rate and high overdrive performance. The MCC-BTC algorithm uses four compression methods, one of which is selected. The four compression modes either use the single-bitmap-generation method or the subsampling method for chrominance. As shown in the simulation results, the proposed algorithm improves the performance of both coding (up to 2.73dB) and overdrive (up to 2.61dB), and the visual quality is improved in comparison to other competing algorithms in literature.