An image quality enhancement circuit and a method using inter-frame correlativity includes a first transfer function generator calculating histogram data corresponding to a gray level distribution with respect to an inputted luminance signal by frame unit to generate a first transfer function by using the histogram data, an inter-frame correlativity calculator calculating inter-frame correlation coefficients from the histogram data for at least one previous frame and a current frame to output inter-frame correlation information corresponding to the correlation coefficients, a transfer function adjustor selectively outputting the first transfer function based on the inter-frame correlation information outputted from the inter-frame correlativity calculator, and a mapper correcting and outputting the inputted luminance signal based on the transfer function outputted from the transfer function adjustor. The image quality enhancement circuit and method using inter-frame correlativity selectively apply a histogram equalization process based on the correlativity between consecutive frames, thereby enhancing an image quality.