In an optical system that includes a waveguide with multiple diffractive optical elements (DOEs) incorporating diffraction gratings, light exiting a trailing edge of an upstream DOE enters a leading edge of a downstream DOE. One or more of the DOEs may include a leading and/or a trailing edge that have a graded profile. At a graded trailing edge of an upstream DOE, grating height smoothly decreases from full height to shallow height as a function of the proximity to the trailing edge. At a graded leading edge of the downstream DOE grating height smoothly increases from shallow height to full height as a function of distance away from the leading edge. By reducing a sharp boundary at the interface between the upstream and downstream DOEs, the graded profiles of the DOE edges enable optical resolution to be maintained decreasing sensitivity to misalignment between the DOEs that may occur during manufacturing.