Recently, the use of color data is growing fast in the area of image processing. To represent full resolution image on a limited output device, image has to be quantized an dithered. So, many dithering techniques are foundd in the printing. In this paper, we propose nonlinear quantization to consider the overlapping phenomena of neighboring printing dots and modified dot diffusion algorithm to compensate the color degradation produced in the quantization process. In the modified dot-diffusion quantization errors to be diffused are adjusted to improve both image blur and color change produced in the dot diffusion. The printed image obtained by the proposed color dithering method has higher visual quality an less color degradation than the images by conventional printing method.