State-of-the-art optical see-through head-mounted displays (OST-HMD) for augmented reality applications lack the ability to correctly render light blocking behavior between digital and physical objects, known as mutual occlusion capability. In this article, we present a novel optical architecture for enabling a high performance, occlusion-capable optical see-through head-mounted display (OCOST-HMD). The design utilizes a single-layer, double-pass architecture, creating a compact OCOST-HMD that is capable of rendering per-pixel mutual occlusion, correctly pupil-matched viewing perspective between virtual and real scenes, and a wide see-through field of view (FOV). Based on this architecture, we present a design embodiment and a compact prototype implementation. The prototype demonstrates a virtual display with an FOV of 34° by 22°, an angular resolution of 1.06 arc minutes per pixel, and an average image contrast greater than 40 percent at the Nyquist frequency of 53 cycles/mm. Furthermore, the device achieves a see-through FOV of 90° by 50°, within which about 40° diagonally is occlusion-enabled, and has an angular resolution of 1.0 arc minutes (comparable to a 20/20 vision) and a dynamic range greater than 100:1. We conclude the paper with a quantitative comparison of the key optical performance such as modulation transfer function, image contrast, and color rendering accuracy of our OCOST-HMD system with and without occlusion enabled for various lighting environments.