A method and apparatus for reducing speckle in a laser illumination system uses a despeckle device including an optical retarder providing an odd integer multiple of substantially half-wave retardation for light emitted from a coherent laser in the laser illumination system. The near half-wave optical retarder has a substantially constant retardance and a spatially varied slow axis. The spatially varied slow axis imposes a phase mask on the beam of light, which provides sub-resolution optical phase modulation to a resolution spot on the detector. The near half-wave optical retarder is actuated mechanically or electrically to vary the sub-resolution optical phase modulation within an integration time of the detector.