A three-dimensional volumetric display system utilizing a rotating panel is described. The LEDs are arranged in a matrix configuration on the panel. They can be addressed by control circuit to create a sequence of two-dimensional image information at a predefined interval. These discrete images will be perceived and interpreted as an integrated three-dimensional image due to eye persistence. The system can provide 49152 voxels in a cylinder display space with a diameter of 144 mm and a height of 110 mm. The three-dimensional image displayed provides viewers with true depth cues, binocular parallax, accommodation and convergence, etc., and can be observed from any directions horizontally without the need for any special viewing aids. The structure, principle of displaying method and the volumetric information encoding are discussed. Moreover, the relationship between quality of display, optimization of selection of voxels and initial image information displayed are analyzed in detail.