A panel driving circuit that produces a panel test pattern and a method of testing a panel are provided. The driving circuit includes a pattern generation unit and a selection unit. The pattern generation unit responds to a system clock and produces pattern test data and pattern test signals. The selection unit responds to a test signal and selects and outputs either (a) the pattern test data and the pattern test signals that are outputted from the pattern generation unit, or (b) the pattern test data and pattern test signals that are directly applied from the outside. The driving circuit and the method of the panel test generates the panel test data, the horizontal synchronizing signal, the vertical synchronizing signal, and the data activating signal within the driving circuit using a system clock so that the testing of the panel can be carried out without using a separate test device.