A system is provided. The system includes a waveguide configured to guide an image light to propagate inside the waveguide. The system also includes a plurality of diffractive components coupled to the waveguide and switchable between operating in a diffraction state to direct the image light from the waveguide to an eye-box of the system, and operating in a non-diffraction state to transmit a light from a real-world environment to the eye-box. The system further includes a controller coupled with the plurality of diffractive components and configured to switch each of the plurality of diffractive components between operating in the diffraction state during a virtual-world subframe of a display frame and operating in the non-diffraction state during a real-world subframe of the display frame.