An image projection system and method are presented to project an image on at least one of first and second projection planes. The system comprises a light source system including one or more light source assemblies operable to generate light of one or more predetermined wavelength range; a spatial light modulator (SLM) system including one or more SLM units operable to spatially modulate input light in accordance with an image to be directly projected or viewed; and two optical assemblies associated with two spatially separated light propagation channels, respectively, to direct light to, respectively, the first and second projection planes with desired image magnification. The system is configured to selectively direct the input light propagating towards the SLM system or light modulated by the SLM system to propagate along at least one of the two channels associated with the first and second projection planes, respectively.