Laser-driven　projection　display　puts　forward　urgent　demand　for　color　converter　materials　to　simultaneously　achieve　balanced-spectrum　properties　and　strong　heat　dissipation.　Herein,　this　work　develops　a　novel　optofunctional　composite　by　coupling　Y3Al5O12:Ce3+　transparent　ceramics　(TC)　with　CaAlSiN3:Eu2+　phosphor-in-glass　film　(PiGF)　for　the　first　time.　Remarkably,　this　new　material　architecture　design　enables　a　balance　between　the　spectrum　properties　and　heat　dissipation　ability,　and　can　yield　high-quality　white　light　with　brightness　of　over　2500 lm,　luminous　efficacy　(LE)　of　over　200 lm　W−1,　correlated　color　temperature　(CCT)　of　3700–4100　K,　and　improved　color　rendering　index　(CRI)　of　60–70.　Furthermore,　the　PiGF@TC-converted　laser　projection　system　is　also　successfully　designed,　showing　natural　and　real　color　restoration.　Additionally,　the　combined　action　of　thermal　quenching　and　optical　excitation　intensity　quenching　is　confirmed　for　the　luminescence　saturation　upon　high-power　blue　laser　driven.　The　main　mechanism　of　optical　quenching　is　identified　to　be　energy　upconversion　dominated　by　second-order　nonlinear　processes.　The　findings　described　here　suggest　a　step　toward　developing　the　admirable　laser-driven　color　converters　for　next-generation　lighting　sources.　©　2023　Wiley-VCH　GmbH.