A Displaced Micro-mesh (DMM) primitive enables high complexity geometry for ray and path tracing while minimizing the associated builder costs and preserving high efficiency. A structured, hierarchical representation implicitly encodes vertex positions of a triangle micro-mesh based on a barycentric grid, and enables microvertex displacements to be encoded efficiently (e.g., as scalars linearly interpolated between minimum and maximum triangle surfaces). The resulting displaced micro-mesh primitive provides a highly compressed representation of a potentially vast number of displaced microtriangles that can be stored in a small amount of space. Improvements in ray tracing hardware permit automatic processing of such primitive for ray-geometry intersection testing by ray tracing circuits without requiring intermediate reporting to a shader.