Volume holographic components are being used to enhance the performance of a variety of liquid crystal and projection display systems. Holographic components address the ever-present need within display systems for more efficient light management. With proper design, holographic components address this need with higher light throughput, reduced thickness and weight, reduced energy consumption, and additional opportunities for unique system functions. This paper describes design parameters and examples of improved devices by introducing the unique features of diffractive holographic components. These features include angular and spectral selectivity, high efficiency, and multiple optical functions designed into single components. Holographic reflectors, front diffusers, and compensations films have been developed and used in direct view liquid crystal displays. Holographic color filters and projection screens have also been developed based on this technology. For these applications the holographic component and system will be discussed. Finally, design considerations will be discussed that relate to the development of new display systems and components.