The sensitivity of X- and Y-cells in the dorsal lateral geniculate nucleus of the cat to small, temporally modulated displacements of grating stimuli was measured at 0.175, 0.25, 0.50, 1.00, and 2.00 c/deg. For every cell, two threshold measures were determined: first, a contrast threshold with a counterphase grating and then a displacement threshold with a grating matched in spatial frequency, but whose contrast was 2.5 times the threshold value. The results showed that displacement thresholds of both X- and Y-cells decreased with increasing spatial frequency. At low spatial frequencies, mean displacement thresholds of X- and Y-cells were similar, but at intermediate spatial frequencies, Y-cell thresholds were lower than X. X-cell displacement thresholds were lower than Y only at the highest spatial frequency tested. Consistent with previous reports, contrast thresholds also varied with spatial frequency for both X- and Y-cells. The local luminance differences produced by the contrast threshold and displacement threshold stimuli for the two classes of cells were compared. Across all spatial frequencies, the change in position of the gratings at displacement threshold produced smaller luminance differences than the counterphase gratings at contrast threshold. This enhanced sensitivity of X- and Y-cells to a local luminance changes produced by grating displacement was related to the high spatial contrast of the grating and not to the displacement per se.