A directional illuminator includes a light source, a pupil-replicating lightguide, and a tiltable reflector coupling the light source to the pupil-replicating lightguide. The exit beam angle of the light outputted by the pupil-replicating lightguide follows the in-coupling angle, and accordingly depends on the tilting angle of the tiltable reflector. The directional illuminator with steered light beam may be used to illuminate a display panel. Steering the illuminating light by the tiltable reflector enables one to steer the exit pupil of the display device to match the user's eye location(s).