A desktop-based stereoscopic projection display system affording high-resolution stereoscopic and peripheral viewing of three-dimensional color imagery over a field of view of at least 180.degree.. The projection volume required by each image projector of the display system is disposed substantially within the overall display volume of the display system, while maximizing the viewing volume within which the viewer is free to move during interactive stereoscopic viewing sessions. The display system utilizes high-resolution image projectors, keystoning correcting optics and projection-beam folding mirrors which are compactly mounted immediately above the upper volume-boundary surface of the overall display volume of the system, in order to permit the use of three-dimensional display structures having footprints and display volumes that are supportable upon desktops and in other viewing environments characterized by spatial restrictions.