An image projection system has a wire grid polarizing beam splitter which functions as both the polarizer and the analyzer in the system. A light source produces a source light beam directed at the beam splitter which reflects one polarization and transmits the other. A liquid crystal array is disposed in either the reflected or transmitted beam. The array modulates the polarization of the beam, encoding image information thereon, and directs the modulated beam back to the beam splitter. The beam splitter again reflects one polarization and transmits the other so that the encoded image is either reflected or transmitted to a screen. The wire grid polarizing beam splitter is capable of being oriented at various incident angles with respect to the source light beam and modulated beam, and accepts relatively divergent light.