A liquid crystal display device includes an array substrate and a counter substrate, a liquid crystal cell held between the substrates 300 and containing liquid crystal molecules arranged to have an alignment corresponding to alignment properties of inner surfaces of the substrates, first and second polarizing plates having individual polarization axes and mounted on outer surfaces of the first and second substrates, respectively, a pixel electrode and counter electrode formed on the array substrate to apply a lateral electric field substantially parallel to the first and second substrate into the liquid crystal cell. The liquid crystal display device controls the alignment of the liquid crystal molecules by the lateral electric field between the pixel and counter electrodes. Particularly, in the liquid crystal display device, an optical retardation plate is interposed at least between the first polarizing plate and the array substrate, and an optical axis and retardation value of the optical retardation plate are determined to compensate for twisting of the alignment of the liquid crystal molecules caused upon application of the lateral electric field.