An optical system for overlaying a first image of a scene and a second image includes a first imaging device providing the first image, a second imaging device with an image display and collimation optics providing the second image, and a waveguide. The waveguide has a first diffraction grating configured to receive the first image, a second diffraction grating configured to receive the second image, and a guide portion disposed between the first diffraction grating and the second diffraction grating configured to convey the second image to the first grating. The first diffraction grating is configured to overlay the first image and the second image.