By introducing a stack of alternating high and low index dichroic material layers on the exit surface of a waveguide for a wedge type directional backlight, natural reflectivity differences between polarized components can be increased, effectively reflecting the vast proportion of S-polarized light rays, while at the same time transmitting the P-polarized light rays, of light impacting the exit surface of the waveguide at an angle sufficient to exit the waveguide. This recovers polarization in wedge type backlight systems, increasing illumination exiting the waveguide. Also, on the back reflecting surface of the waveguide, a birefringent material can be added to efficiently transform S-polarized reflected light from the dichroic stack, into returning P-polarized light. Because returning rays that are now P-polarized by the birefringent material have already achieved the critical angle for exiting the waveguide, the rays transformed to P-polarization can now also exit the waveguide, increasing waveguide illumination.