A patterned retarder is made by forming an alignment layer 2 on a substrate 1. The alignment layer 2 is rubbed in a first rubbing direction to provide a uniformly rubbed alignment layer 2a. The alignment layer 2a is then masked with a mask 5 and subjected to a second rubbing in a different direction to provide first regions A with a first alignment direction and second regions B with a different second alignment direction. The mask is removed and a layer of birefringent material 7 is formed on the alignment layer 6. The optic axis of the birefringent material of the layer 7 adopts the alignment of the underlying alignment layer 6 and the birefringent material is fixed to provide a patterned retarder layer 8.