An enhanced spatial light modulator (ESLM) array, a microelectronics patterning system and a projection display system using such an ESLM for heat-minimization and resolution enhancement during imaging, and the method for fabricating such an ESLM array. The ESLM array includes, in each individual pixel element, a small pixel mirror (reflective region) and a much larger pixel surround. Each pixel surround includes diffraction-grating regions and resolution-enhancement regions. During imaging, a selected pixel mirror reflects a selected-pixel beamlet into the capture angle of a projection lens, while the diffraction grating of the pixel surround redirects heat-producing unused radiation away from the projection lens. The resolution-enhancement regions of selected pixels provide phase shifts that increase effective modulation-transfer function in imaging. All of the non-selected pixel surrounds redirect all radiation energy away from the projection lens. All elements of the ESLM are fabricated by deposition, patterning, etching and other microelectronic process technologies.