In embodiments of a transparent display backlight assembly, a backlight panel is operable as a transparent panel, and a light source generates light that the backlight panel directs from the light source to illuminate a display panel of a display device. Light refraction features refract and scatter the light, where the light refraction features are spaced for approximate transparency of the backlight panel and to illuminate the display panel. An active diffuser can be implemented as an additional transparent panel and operable for activation to diffuse the light from the backlight panel that illuminates the display panel.