This article presents a novel compact near-eye display system called waveguide holography, which combines the advantages of waveguide and holographic displays to overcome challenges in achieving true 3D holographic augmented reality (AR) glasses. The system uses a waveguide combiner with surface relief gratings to expand the exit pupil and enable a large software-steerable eyebox. A spatial light modulator (SLM) is used to control the output wavefront by modeling coherent light interactions within the waveguide. This approach allows for enhanced resolution and suppression of phase discontinuities caused by pupil replication. The system also addresses the vergence-accommodation conflict and provides a compact form factor. Experimental results demonstrate the ability to display full 3D images and achieve a large eyebox. The system also offers resolution enhancement beyond conventional waveguide displays. The paper discusses the challenges of waveguide displays, including limited étendue and focus spread effects, and how the proposed system addresses these issues. The system is validated through experimental results, showing improved image quality and reduced ghost noise. The paper also discusses the modeling of hologram propagation in waveguides, including the use of a complex wavefront camera for calibration. The system is shown to be scalable and capable of achieving high-resolution 3D holographic displays. The paper concludes with a discussion of future research directions and potential applications of the proposed system.This article presents a novel compact near-eye display system called waveguide holography, which combines the advantages of waveguide and holographic displays to overcome challenges in achieving true 3D holographic augmented reality (AR) glasses. The system uses a waveguide combiner with surface relief gratings to expand the exit pupil and enable a large software-steerable eyebox. A spatial light modulator (SLM) is used to control the output wavefront by modeling coherent light interactions within the waveguide. This approach allows for enhanced resolution and suppression of phase discontinuities caused by pupil replication. The system also addresses the vergence-accommodation conflict and provides a compact form factor. Experimental results demonstrate the ability to display full 3D images and achieve a large eyebox. The system also offers resolution enhancement beyond conventional waveguide displays. The paper discusses the challenges of waveguide displays, including limited étendue and focus spread effects, and how the proposed system addresses these issues. The system is validated through experimental results, showing improved image quality and reduced ghost noise. The paper also discusses the modeling of hologram propagation in waveguides, including the use of a complex wavefront camera for calibration. The system is shown to be scalable and capable of achieving high-resolution 3D holographic displays. The paper concludes with a discussion of future research directions and potential applications of the proposed system.