Abstract: A substrate-guided holographic diffuser has a light-guide section configured to in-couple light and transmit the light within itself via total internal reflection. It can also have a brightness enhancement section that recycles non-diffracted light within the light-guide section. A hologram section that receives light from the light-guide section has a holographic structure defining acceptance conditions and is positioned relative to the internally reflected light such that the internally reflected light meets the acceptance conditions of the holographic structure. The internally reflected light is out-coupled by the holographic structure as a projected image of light scattered from a diffuser.