A display is provided that has upper and lower polarizers, a color filter layer, a liquid crystal layer, and a thin-film transistor layer. The color filter layer and thin-film transistor layer may be formed from materials such as glass that are subject to stress-induced birefringence. To reduce light leakage that reduces display performance, one or more birefringence compensation layers may be incorporated into the display to help compensate for any birefringence effects. The compensation layers may include a birefringence compensation layer attached to the color filter layer or the thin-film transistor layer. A display may include an upper compensation layer attached to the color filter layer and a lower compensation layer attached to the thin-film transistor layer. The compensation layer may be formed from glass or polymer materials that have a negative photo-elastic constant.