The present invention provides for a laser diode light diffusion unit that comprises a casing 10 with a lens cover that holds a laser diode mounted 2 on a heat sink 16, a mirror 12, a collimator lens 4 and a holographic diffusion screen 8. The casing 10 is made of a rigid thermally conducting material, and the heat sink is mounted within the casing such that a concentrated beam of light 3 produced by the laser diode 2 is directed at the mirror 12. The concentrated beam of light 3 directed at the mirror is reflected at approximately 90.degree. into the base of the collimator lens 4, where the collimator lens 4 converts the concentrated beam 3 of light into a plane of light 6 that is projected over and in opposite direction to the path of the concentrated beam of light 3. The plane of light 3 then passes through the holographic diffusion screen 8, where the holographic diffusion screen spreads the plane of light at predetermined angles which then passes through the lens cover and out of the casing.