A light source based on blue laser and phosphor wheel is developed for portable projection displays. The phosphor wheel has multiple phosphor segments that can convert the blue laser to different color light. When the phosphor wheel is rotating, sequential color light will be generated. A color filter set is integrated with the phosphor wheel; therefore the color coordinates of each color light can be controlled to fulfill the requirements such as Rec. 709 standard. Thermal quenching of the phosphor is studied and improved to enhance the energy efficacy of this light source. Engineering samples were made to do performance, lifetime and reliability tests.