XD engine is a technology used In LG HDTV’s to enhance picture quality. In addition to providing standard features such as Deinterlacing and upscaling, it also provides three user selectable enhancements
This feature attempts to increase the black levels and brightness of various aspects of the picture
This alters and enhances color tones
Provides analog and MPEG noise reduction.
References
XD engine Wikipedia(Text) CC BY-SA