Abstract: A latent image projection system, and related method, for displaying entertaining visual effects and optical illusions by projecting a polarization-encoded latent image onto a polarization-preserving viewing screen. The latent image is revealed using a polarized analyzer having its polarization direction aligned with a polarization direction associated with the latent image. A "magic window" special effect is produced by sizing the analyzer to reveal only a portion of the latent image. A Pepper's Ghost image is created by orienting a dielectric plate so that its surface analyzes the latent image on the screen and superimposes it onto the image of a real object. A dielectric surface, such as a pond of water, placed between a viewer and the screen will analyze and reveal the latent image when the viewer views the reflection of the screen on the surface of the water.