LCD and OLED are presently the two dominating microdisplays for VR headsets. How to achieve high resolution density for wide field of view and eliminating the screen‐door effect, while keeping low power consumption remains a major challenge. For ultracompact and lightweight AR displays, micro‐LED, OLED‐on‐silicon, MEMS, laser beam scan, and front‐lit LCoS are strong contenders. To reduce the required display brightness for low power consumption, and to enable occlusion effect, a segmented smart dimmer is a viable approach. The pros and cons of each approach will be analyzed.