A handheld digital drawing and projection device is provided. The device includes a screen for receiving a user input. In embodiments, a stylus tethered to the device provides the user input at the screen. The device further includes a determining component for determining an output corresponding to the received user input. A projector for projecting the determined output onto an external projection surface is also included. In some embodiments, the projector further projects a display environment, which includes one or more projected elements.