A head-mounted display device includes a display panel (such as a liquid crystal display), an optics system for focusing a portion of the display onto an eye of a user, and a backlight assembly including a light guide, a plurality of extraction features positioned on a surface of the light guide, and at least one laser diode for directing light into the light guide. The light guide is sized and dimensioned to illuminate only a portion of the display that is focused by the optics system; with the plurality of light extraction features configured to diffuse light toward the display panel for back illuminating the display panel.