Electronic device with multi-element display illumination system

An electronic device may have a spatial light modulator. Control circuitry in the electronic device may use the spatial light modulator to generate images. A light source may be used to produce illumination for the spatial light modulator. An optical system may direct the illumination onto the spatial light modulator and may direct corresponding reflected image light towards eye boxes for viewing by a user. Head-mounted support structures may be used to support the spatial light modulator, light source, and optical system. The light source may include light-emitting elements such as light-emitting diodes or lasers. Multiple light-emitting elements may be provided in the light source in a one-dimensional or two-dimensional array. During operation, the control circuitry can individually adjust the light-emitting elements.