In this paper, a method is proposed for finding a pixel transformation function that maximizes backlight dimming while maintaining a pre-specified image distortion level for a liquid crystal display. This is achieved by finding a pixel transformation function, which maps the original image histogram to a new histogram with lower dynamic range. Next the contrast of the transformed image is enhanced so as to compensate for brightness loss that would arise from backlight dimming. The proposed approach relies on an accurate definition of the image distortion which takes into account both the pixel value differences and a model of the human visual system and is amenable to highly efficient hardware realization. Experimental results show that the histogram equalization for backlight scaling method results in about 45% power saving with an effective distortion rate of 5% and 65% power saving for a 20% distortion rate. This is significantly higher power savings compared to previously reported backlight dimming approaches.