A display with local dimming backlight and an active privacy mode. The display may include a backlight source, lenses, a passive diffuser, an active diffuser and a transmissive display. The backlight source may define a two-dimensional matrix of light sources configured to generate an initial light. The lenses may be mounted adjacent to the backlight source, aligned with the light sources, and configured to generate a collimated light. The passive diffuser may be mounted adjacent to the lenses and configured to spatially spread the collimated light. The active diffuser may be mounted adjacent to the passive diffuser, configured to generate an intermediate light in response to the collimated light, and configured to change a diffusive property of the intermediate light in response to a scattering signal. The transmissive display may be mounted adjacent to the active diffuser and configured to generate multiple visible images by modulating the intermediate light.