* Earth's Atmosphere: The twinkling we see from Earth is caused by the Earth's atmosphere. As light from stars passes through the different layers of our atmosphere, it's constantly being refracted (bent) and scattered. This bending and scattering creates the twinkling effect.
* No Atmosphere on the Moon: The Moon has virtually no atmosphere to speak of. Without this atmospheric interference, the starlight travels in a straight line, reaching your eyes without being disrupted.
So, you'd see stars on the Moon as steady, unchanging points of light.
