Multiscale error diffusion is superior to conventional error diffusion methods in digital halftoning as it can eliminate directional hysteresis completely. However, there is a bias to favor a particular type of dots in the course of the halftoning process. A new multiscale error diffusion method is proposed to improve the diffusion performance by reducing the aforementioned bias. The proposed method can eliminate the pattern noise in flat regions and the boundary effect found in some other conventional multiscale error diffusion methods. At the same time, it can preserve the local features of the input image in the output. This is critical to quality, especially when the resolution of the output is limited by the physical constraints of the display unit.