A liquid crystal etalon includes a chiral nematic material contained in a liquid crystal cell having alignment surfaces configured to bias the chiral nematic material toward a twisted liquid crystal configuration with a twist less than 360°. Electrodes are arranged to apply an operative electrical bias to the liquid crystal cell. Mirrors disposed about the chiral nematic material define a resonant optical cavity. At a first electrical bias the etalon is transmissive for light of a first wavelength via a selected liquid crystal twist angle and cavity thickness at which different non-equal eigenmodes reach resonance conditions simultaneously. In a projector embodiment, a projection system with a field sequential image projection light source is coupled with the liquid crystal etalon, the etalon electrodes are patterned into pixels defining a display area, and the projector is operated in a field sequential illumination mode.