Augmented reality (AR) technology has been applied in various areas, such as large-scale manufacturing, national defense, healthcare, movie and mass media and so on. An important way to realize AR display is using computer-generated hologram (CGH), which is accompanied by low image quality and heavy computing defects. Meanwhile, the diffraction of Liquid Crystal on Silicon (LCoS) has a negative effect on image quality. In this paper, a modified algorithm based on traditional Gerchberg-Saxton (GS) algorithm was proposed to improve the image quality, and new method to establish experimental system was used to broaden field of view (FOV). In the experiment, undesired zero-order diffracted light was eliminated and high definition 2D image was acquired with FOV broadened to 36.1 degree. We have also done some pilot research in 3D reconstruction with tomography algorithm based on Fresnel diffraction. With the same experimental system, experimental results demonstrate the feasibility of 3D reconstruction. These modifications are effective and efficient, and may provide a better solution in AR realization.