Solutions of C-60 and C-70 exhibit a large third-order nonlinear respo
nse, even when investigated with low-power visible lasers. The remarka
bly large nonlinearity observed is attributed to a combined effect of
thermally induced nonlinear refractive index changes and simultaneous
nonlinear absorption. Fullerenes have the potential for applications i
n all-optical devices if they retain the same properties as in solutio
n when dispersed in a transparent polymer matrix.