A waveguide display for use in a near-eye display system includes a waveguide stack having at least one waveguide substrate, an input coupler coupling light into the waveguide substrate and an optical arrangement that includes a birefringent reflective polarizer, a mirror and a polarization state converting element configured to convert light in a linear polarization state to a circular polarization state and to convert light in a circular polarization state to a linear polarization state. The mirror is arranged to receive light from the polarization state converting element and reflect the light back to the polarization state converting element. The optical arrangement causes a transmission path of light that traverses the waveguide stack a first time to be folded back through the waveguide stack such that at least a portion of light not coupled into the waveguide substrate is caused to traverse the waveguide stack a plurality of additional times.