In this paper, we propose a novel defects inspection algorithm for TFT-LCD panels. We first compensate the distorted image caused by the camera distortion and the uneven illumination environment using the least squares method and the bezier surface. We find a starting point of each pattern for restricting each pattern. A clean image is compared to each pattern to find defects using modified PCSR-G algorithm. The simulation example shows that our algorithm not only inspects the defects well, but also is robust to the 1-pixel error.