The main drawback of a transmission type holographic screen is the color separation when the color images are projected on it due to its high dispersion. This drawback can be overcome by recording the screen with use of a long narrow slit type diffuser as an object. With the diffuser, a holographic screen of size 30 by 40 cm2 has been recorded to display a full color stereoscopic image. The images displayed on the screen show a good resolution and are naturally colored, except near the edges of the screen. The color distortions in the edges of the screen are reduced by a lenticular sheet attached to the screen. The lenticular sheet enlarges the viewing zone. The image that appears on the screen is bright enough to watch even in a normally illuminated room