A lightguide optical element (LOE) configured for polarization scrambling is provided. The LOE includes a transparent substrate having a first refractive index, the substrate having a pair of parallel external surfaces configured to propagate light within the LOE through total internal reflection (TIR), and a plurality of mutually parallel partially reflective internal surfaces, those being non-parallel to the pair of parallel external surfaces and configured to couple out said light to a viewer. The LOE further includes a first coating on at least one external surface of the substrate, the first coating being of a coating material having a second refractive index higher than the first refractive index; The LOE further includes an antireflective (AR) coating on at least one external surface of the substrate over the first coating.