Abstract: An encapsulated waveguide system for a near eye optical display includes a first outer layer, a second outer layer, at least one waveguide substrate comprising an input area and an output area, a first spacer and a sealing element. The at least one waveguide substrate is disposed between the first and second outer layers and spaced therefrom by the first spacer. The sealing element joins edges of the first and second outer layers so as to encapsulate the at least one waveguide substrate within a cavity formed by the first and second outer layers. The formed cavity includes a first cavity between the at least one waveguide substrate and the first outer layer and a second cavity between the at least one waveguide substrate and the second outer layer.