As a new type of display technology, augmented reality display provides an attractive new way for people to perceive the world. Augmented reality displays provide a rich perspective of the surrounding environment, and by overlapping virtual images with the real world, viewers can be immersed in an imagined world where fiction and reality are combined. At present, there are some problems in optical combiner in mainstream augmented reality display devices. For example, optical waveguide devices have the problem of low light efficiency, and the optical engine of the device needs to provide higher brightness, which leads to increased energy consumption of the device. However, there are some problems such as large size and complex system in the semi-transparent and semi-reflective mirror, freeform surface and retina scanning, which make the equipment inconvenient to carry. Therefore, near-eye display optical system with direct projection retinal projection augmented reality is proposed in this paper.In this paper, an optical system consisting of retinal projection lens, parallel light image source and compensating lens group was constructed by simulation. In the simulation process, glass plate was used instead of parallel light image source. The retina projection lens selected the double glued lens as the initial structure for simulation and optimization and to view the RMS and MTF. Then, the corresponding compensating lens set was designed for the retinal projection lens and the optimized RMS and MTF were viewed. Finally, the laser light source and related optical devices were used to replace the parallel light image source in the optical system, and then the prototype of the optical system was built with geometric lenses and the display effect was observed.For the parallel light image source in this design, it is set to emit collimated image light and focus through the retinal projection lens, so the designed focusing lens only considers the 0° field of view Angle, and after optimization, its RMS radius is less than 10 μm, which has a good focusing effect. Ambient light is also affected by refraction when passing through a transparent display source, so a glass plate is used instead. During the whole system simulation, in order to simulate the real application scenario, the human eye optical model is used to assist the optimization of the system. After optimization, the whole system has a good imaging quality, the RMS radius of the three fields of view is less than 6 μm, and the MTF is above 0.5. Finally, through observation, the prototype built for this design can achieve a good augmented reality display effect.After simulation and optimization, the designed optical system works in the band of 486-656 nm. When imaging parallel source rays, the RMS radius of the dot plot is 9.59 μm, and the Modulation Transfer Function (MTF) at the cutoff frequency is greater than 0.8.When the compensation lens group is added, the RMS radius of the dot plot of the whole system is 3.28 μm, 4.44 μm and 5.36 μm, respectively, at 0°, 3.75° and 7.5°, and the MTF of the whole field of view at the cutoff frequency is higher than 0.6. The designed optical system attenuates the power of parallel light image source and ambient light less than 10% and 30% respectively. The system can realize the retinal projection imaging and compensate the ambient light at the same time, and the prototype built can realize the augmented reality display effect, which realizes the further verification of the design. The system has the advantages of good imaging quality, high light efficiency and simple structure.