A near-eye display for projecting an image to an eye of an observer, the near-eye display comprising: (a) a light-guide optical element (62, 114) having first and second major external surfaces that are planar and mutually parallel; (b) an image projector adapted to project illumination corresponding to the image, said image projector being optically coupled to said LOE (62, 114) so as to introduce the illumination into said LOE so as to propagate within said LOE (62, 114), said image projector comprising: (i) at least one light-generating laser diode (66, 110), and (ii) a controller for actuating said laser diode (66, 110) to generate light; and (c) a coupling-out arrangement comprising a plurality of mutually-parallel, partially-reflective surfaces (116a, 116b) associated with said LOE (62, 114) at an oblique angle to said first major external surface for coupling the illumination out of said LOE towards the eye of the observer, said coupling-out arrangement having a spacing between adjacent surfaces of said plurality of partially-reflective surfaces (116a, 116b), wherein said light-generating laser diode (66, 110) has a characteristic variation of coherence length of generated light as a function of diode actuation power, characterized in that the illumination is adapted to propagate within said LOE (62, 114) by total internal reflection at said first and second major external surfaces; and said controller is configured to actuate said laser diode (66, 110) at a level of diode actuation power that generates light with a coherence length less than twice said spacing between adjacent surfaces of said plurality of partially-reflective surfaces (116a, 116b). (a) a light-guide optical element (62, 114) having first and second major external surfaces that are planar and mutually parallel; (b) an image projector adapted to project illumination corresponding to the image, said image projector being optically coupled to said LOE (62, 114) so as to introduce the illumination into said LOE so as to propagate within said LOE (62, 114), said image projector comprising: (i) at least one light-generating laser diode (66, 110), and (ii) a controller for actuating said laser diode (66, 110) to generate light; and (i) at least one light-generating laser diode (66, 110), and (ii) a controller for actuating said laser diode (66, 110) to generate light; and (c) a coupling-out arrangement comprising a plurality of mutually-parallel, partially-reflective surfaces (116a, 116b) associated with said LOE (62, 114) at an oblique angle to said first major external surface for coupling the illumination out of said LOE towards the eye of the observer, said coupling-out arrangement having a spacing between adjacent surfaces of said plurality of partially-reflective surfaces (116a, 116b), wherein said light-generating laser diode (66, 110) has a characteristic variation of coherence length of generated light as a function of diode actuation power, characterized in that the illumination is adapted to propagate within said LOE (62, 114) by total internal reflection at said first and second major external surfaces; and said controller is configured to actuate said laser diode (66, 110) at a level of diode actuation power that generates light with a coherence length less than twice said spacing between adjacent surfaces of said plurality of partially-reflective surfaces (116a, 116b).