A display may have an array of pixels. The pixels may have color filter elements such as red, green, and blue color filter elements. A layer of opaque material may be used to form a black matrix. The black matrix may have openings that receive the color filter elements. A backlight unit may produce backlight illumination for the display. A reflector layer may be interposed between the black matrix and the backlight unit. The reflector layer may have openings aligned with the openings in the black matrix and the color filter elements and may overlap the black matrix. Some of the backlight from the backlight unit may pass through the color filter elements. Other backlight may by be recycled by being reflected off of the reflector layer, thereby enhancing backlight efficiency.