The various embodiments include a near-eye display having a transmissive display and a diffractive micro-lens array. The transmissive display may be positioned relative to the diffractive micro-lens array so that the distance between the transmissive display and the diffractive micro-lens array is be approximately equal to focal length of the diffractive micro-lens array. The transmissive display may also be positioned relative to the diffractive micro-lens array so that a percentage of light emitted from the transmissive display is diffracted by the micro-lens array and collimated into focus on a retina of a human eye. The transmissive display may be further positioned relative to the diffractive micro-lens array so that light from a real world scene passes through transparent portions of the transmissive display and is diffracted by the micro-lens array out of focus of the human eye.