A reflective TFT-LCD with an internal diffusive micro slant reflector (DMSR) is developed to improve the previous MSR structure [1,2]. The DMSR structure is optimized to obtain a desired light scattering disbribution cone while still preserving the asymmetry characteristics. A 6.4" VGA full-color reflective TFT-LCD with a DMSR is realized. In this paper, we will discuss the optical perperties of the panel. The measurement results show that the reflectance is 42% compared with a Lambertian white standard and the contrast ratio is larger than 20:1.