This paper proposes a new automatic detection method to inspect mura defects on display film surface using morphological image processing and labeling. This automatic detection method for mura defects on display films comprises 3 phases of preprocessing with morphological image processing, Gabor filtering, and labeling. Since distorted results could be obtained with the presence of non-uniform illumination, preprocessing step reduces illumination components using morphological image processing. In Gabor filtering, mura images are created with binary coded mura components using Gabor filters. Subsequently, labeling is a final phase of finding the mura defect area using the difference between large mura defects and values in the periphery. To evaluate the accuracy of the proposed detection method, detection rate was assessed by applying the method in 200 display film samples. As a result, the detection rate was high at about 95.5%. Moreover, the study was able to acquire reliable results using the Semu index for luminance mura in image quality inspection.