A near-eye display system includes a waveguide having an incoupler configured to receive display light from an optical engine and to redirect the display light into the waveguide. The display system includes one or more integrated optical elements that are each configured to receive the display light and to apply a first optical function to the display light. The waveguide may include one or more encapsulation layers to encapsulate the incoupler and/or at least one of the integrated optical elements.