Provided are an optical unit and a display device that can appropriately perform reflection and transmission of image light emitted from a panel provided with a light emitting element, over a wide wavelength region in a dichroic mirror. The optical unit includes a first panel, a second panel, and a third panel arranged facing a first incident surface, a second incident surface, and a third incident surface of a dichroic prism, respectively, and each of the first panel, the second panel, and the third panel emits unpolarized image light. A polarization element is arranged between the first panel and the dichroic prism, and first image light emitted from the first panel is incident on the dichroic prism as linearly polarized light. A first dichroic mirror has polarization separation characteristics in addition to transmittance-wavelength characteristics.