We present results from a Monte Carlo simulation study of the phase di
agram and the order of the modulated liquid to crystal transition in l
aser field modulated colloids. We find that for low values of beta V-e
, the strength of the modulation potential, the transition is first or
der, but changes to a continuous transition for high values of beta V-
e, in agreement with the conclusions from the density functional theor
y of laser induced freezing. However, we find in the simulation a nove
l reentrant laser induced melting transition from the crystal to the m
odulated liquid phase with increasing beta V-e, unlike the (mean held)
density functional phase diagram.