We present an approach to the dielectric function of dense plasma based on
a generalized linear response theory. The relation of this approach to the
Drude model as well as to the random phase approximation is discussed. It i
s shown, that the dielectric function presented here obeys certain exact kn
own properties such as sum rules. Using the dielectric function, the absorp
tion coefficient for electro-magnetic wave interacting with dense targets i
s calculated. Regions for the applicability for simplified models are given
, implications for the diagnostics of laser-induced plasmas are pointed out
.