The phase shifts experienced by a polarized light wave when it propaga
tes through media with arbitrary birefringence, dichroism and depolari
zing properties, while on the one hand provide the basis for a variety
of optical devices and experiments, on the other provide a powerful m
eans of understanding unitary evolution, nonunitary evolution and deco
herence of two-state quantum systems by virtue of a mathematical isomo
rphism of the two systems. These also help understand aspects of evolu
tion of classical systems under the group of rotations in three-dimens
ional space, namely the SO(3) group, by virtue of its homomorphism wit
h the group SU(2) governing unitary evolution of polarized light waves
. In this review we present a survey and analysis of recent work on to
pological phases with polarization of light which has revealed several
counterintuitive features of such phase shifts such as 2n pi anholono
mies, nonlinear and discontinuous behaviour originating in singulariti
es, peculiar spectral dependence, etc. We point out several areas wher
e these results may find practical application, for example endless ph
ase correction in interferometric sensors, fast switching spatial ligh
t modulators, phase shifters with unusual chromatic properties, phasin
g of antenna arrays, etc. Several useful theoretical insights relevant
to polarization optics, quantum mechanics, classical mechanics and ot
her areas of physics, obtained from the work on polarization states ar
e described and some directions for future work are indicated.