Abstract: A layer having an irregular sectional surface is formed on the surface of at least one of a pixel electrode and confronting electrode of a liquid crystal layer so as to confront a liquid crystal layer. The liquid crystal layer is formed of a polymer dispersed liquid crystal. If the layer having an irregular sectional surface is formed in a convex and concave pattern regularly and cyclically, the thus formed layer serves as a diffraction grating. When the liquid crystal is in an OFF condition, the refractive index n of the diffraction grating is different from the refractive index of the liquid crystal layer. As a result, an incident light to the liquid crystal panel is scattered and at the same time, diffracted. When the liquid crystal in in an ON condition, there is no difference in the refractive index between the diffraction grating and the liquid crystal, and the incident light passes straight through.