High-frequency noise is generated that approximates the appearance of traditional "film grain" for a digital video signal. By adding a relatively small amount of film grain noise, the video can be made to look more natural and more pleasing to the human viewer. The digital film grain generation can be used to mask unnatural smooth artifacts in digital video such as "blockiness" and "contouring" in the case of compressed video and/or used to provide visual enhancements or special effects to any digital video stream. The digital film grain generator can control grain size and the amount of film grain to be added.