We have developed a compact three-dimensional (3-D) display using a depth-fused 3-D (DFD) visual illusion in which two overlapped images with edges displayed at different depths can be perceived as a 3-D image. To make the display compact, we utilize the apparent luminance summation using the summation of polarization-angle changes at two transparent liquid-crystal displays instead of direct luminance summation. This enables moving color 3-D images to be shown on a compact display. Our compact DFD display is promising for various applications, such as cellular phones, personal digital assistants, and computer monitors.