We show numerically that modulational instability of two-dimensional s
olitary waves in quadratic media leads to the formation of a train of
quasi-stable three-dimensional light bullets of mutually trapped funda
mental and second harmonic pulses. The dynamics and stability of these
bullets are studied both numerically and variationally. Small deviati
ons fi om the stationary bullet profile generally lead to long lived p
ulsations. Regions of unstable behaviour (decay) are found for both po
sitive and negative mismatches. (C) 1998 Elsevier Science B.V.