As　metaverse　continues　to　evolve,　near-eye　display　technologies　are　increasingly　focused　on　achieving　compactness,　lightweight,　and　high　brightness　design.　Self-emitting　projection　sources　have　garnered　significant　attention　due　to　their　potential　to　meet　these　requirements.　However,　current　projection　sources　typically　exhibit　a　Lambertian-like　divergence　angle,　leading　to　challenges　in　miniaturization　and　substantial　energy　loss.　In　response　to　these　issues　and　inspired　by　the　shape　of　“mushroom　cap”,　this　paper　proposes　a　collimated　light-emitting　diode　array　encapsulated　with　mushroom-cap　optical　units　for　near-eye　display　projection　engine.　The　study　discusses　the　optimal　parameters　for　the　limited　diode　spacing　and　validates　these　parameters　through　both　simulation　and　experimental　results.　The　mushroom-cap　optical　units　effectively　harness　the　emitting　energy,　confining　the　full　width　at　half　maximum　of　Lambertian　sources　within　the　±10°　range,　while　enhancing　the　central　light　intensity　by　80%.　The　built　experimental　prototype　demonstrates　a　significant　enhancement　in　projection　quality　and　visibility.　This　design　holds　promise　for　ultra-small　self-emitting　projection　engines,　offering　robust　support　for　the　high　performance　and　lightweight　design　of　near-eye　display　devices.　©　2024　IEEE.