Digital halftoning is essential to print or display a continuous tone with binary devices. Error Diffusion (ED) has been a major stream to produce a pictorial image on inkjet prints, but is not always acceptable for commercial printing or EP printer, because it generates the dispersed dots hard to print.This paper proposes a novel method for generating ordered dither mask using “magic square”. Magic square provides spatially balanced threshold values in row, column, and diagonal directions by the rule of “even-sum”. The proposed magic square satisfies the energy minimum criterion in the local area and is expandable to a large scale for sufficient gray scales. We selected the magic square candidates with Fourier spectra concentrated in the middle spatial frequency to produce a smoothed gradation suitable for LBP or commercial printing. The paper introduces a systematic method for expanding small mask to large mask by “master-slave” algorithm. The experimental results show the improved grayscale reproduction with reduced artifacts in comparison with the conventional Bayer dither or ED.