A display may have a backlight unit that provides backlight illumination. The backlight unit may include a light guide that distributes light through the display. Light-emitting diodes may emit light into the light guide. A reflector that is overlapped by the light guide may help reflect light upwards through an array of pixels. The backlight unit may have a chassis that receives the reflector, light guide, light-emitting diodes, and optical films such as diffusers and prism films. Optical and mechanical features in the backlight unit may enhance color and intensity uniformity for the backlight illumination and may help enhance durability.