An SLM-based digital display system (10) having a graphics display subsystem (13 and 18) for closed captioning, on-screen displays, and other graphics images that are overlaid on the video image. The graphics display subsystem (13 and 18) has a graphics processor (21) that prepares the graphics data, which is inserted into the video data path after video data processing and prior to a look-up table unit (27). A select logic unit (24) provides a control signal to a multiplexer (26) that selects between video data and graphics data for input to the look-up table unit (27). The look-up table unit (27) performs its mapping according to the type of data received, such as by linearizing video data or palletizing graphics data.