A stereoscopic three-dimensional (3D) system using a polarization rotator is proposed. The polarization rotator converts the polarizations of different eyes' images in temporal multiplexing. A novel fast nematic liquid crystal mode is also proposed. The new liquid crystal mode has fast response time and high contrast; hence it is a good candidate for polarization rotator. The proposed 3D system utilizes only passive polarized glasses, which are more convenient, light weight and low cost. In addition, the polarization rotator can be applied to current 2D displays and become 3D capable display.