Optical compensation film using discotic liquid crystals has been commercialized to suppress light leakage of twisted nematic (TN) liquid crystal (LC) cells in the dark state when the viewing directions are off-axes. In the conventional film, the tilt angle variation of the discotic LC layers is linear, whereas that of the rod-like LC layers in the TN cell is non-linear with twist alignment. We investigated the optical compensation effects in terms of iso-contrast ratio, gray scale inversion and color shift with linear and non-linear orientation in a tilt angle or twist and non-twist orientation on TN-LC cells. The results showed that the optical compensation with non-linear orientation exhibited an improved performance in suppressing light leakage in the dark state. (C) 2007 Elsevier B.V. All rights reserved.