Extension of the dynamic range of liquid crystal tunable Lyot filter is demonstrated by incorporating with it a liquid crystal variable retarder as an eliminator for the third and fourth order peaks. The filter is continuously tunable in the range 500 nm to 900 nm with a nominal width in the range 50nm-100nm. Design procedure is described including the exact solution to the LC director profile and the suitability for biomedical optical imaging applications. Flexibility in the design is proposed by applying different voltages to the different liquid crystal retarders thus compensating for small thickness deviations from the nominal values and obtaining the high dynamic range.