A display panel defines a display area surrounding a light transmission area, and a light shielding area between the display area and the light transmission area. The display panel includes a lower polarizer and a first light shielding material. The lower polarizer defines a first through hole. At least part of the first light shielding material is in the first through hole. The first light shielding material is aligned with the light shielding area and surrounds the light transmission area, so as to absorb light from a side of the lower polarizer away from the TFT array substrate toward the light transmission area. A display device using the display panel is also disclosed.