This paper discusses the optical system design for projection TV using LCOS type micro display, which provides the high resolution, slim depth, and a large screen of more than 60 inches. We analyzed the relationship between the illumination system, projection lens, color separation & recombination system, and micro display. From this quantitative analysis, the starting data for the optimum light engine was defined, and all optical systems were designed by an optimization process. Three RGB panels were proposed for a high luminence system, and the four prisms symmetrically located make equal optical path lengths for the RGB rays. This color separation & recombination system enables the a compact illumination system. Also, in order to the slim light engine with high resolution, the folded projection lens system was designed by inserting a mirror between projection lenses.