The present invention provides a unique polarizing beam splitter (PBS) that is suitable for use in projection systems and displays. The PBS contains at least one prism having at least one major surface and having a refractive index of at least about 1.6 and a birefringent film disposed on the major surface of the prism. The birefringent film is a multi-layer film having at layers of at least a first material and a second material. After uniaxial stretching, the film exhibits a refractive index difference of less than about 0.15 units in the stretched direction.