We propose a full color computer generated holographic near-eye display (NED) based on white light illumination. The method inspired from color rainbow holography is used for calculation of 2D and 3D color holograms. The parameters of the color hologram calculation are designed based on the parameters of the spatial light modulator (SLM) with 4K resolution. A slit type spatial filter is designed in frequency domain to extract red, green and blue frequency components for full color display. A NED system including a white light source, an achromatic collimating lens, a 4K SLM, a 4f optical filtering system, and an achromatic lens as eyepiece is designed and developed. The main contribution of this paper is the first time to apply the rainbow holography concept to the dynamic full color NED with a compact display system. The optical experiments prove the feasibility of the proposed method.