Generalized quantum measurements can be used to separate deterministic
ally two nonorthogonal quantum states. However, such measurements also
lead to inconclusive results, where the initial state remains unknown
. We introduce a particular type of generalized quantum measurement, w
hich we term loss induced generalized (LIGe) quantum measurement, and
present an experimental realization. This LIGe measurement achieves op
timal deterministic separation of two nonorthogonally polarized single
photons.