In a display panel, a first substrate is opposed to a second substrate and interposing a liquid crystal/resin composite layer. If the display panel is a transmission type display, a film for absorbing light is formed on a black matrix and between pixel electrodes. If the display panel is a reflection type display, a film for absorbing light is formed between reflection electrodes. Further, a counterelectrode is made from a multi-layer film of dielectric films and a transparent electrically conductive film for preventing reflection. The film for absorbing light includes pigments which can absorb light modulated by the liquid crystal/resin composite layer. By using the display panel, a projection display system of high contrast and high brightness can be constructed.