The line shapes of saturation spectroscopy in optically thick two-leve
l media are calculated for atomic and molecular transitions. Line narr
owing and distortion effects due to propagation are presented. For Dop
pler-broadened media it is shown that, due to multiphoton processes, t
he natural linewidth limits the ultimate narrowing that can be reached
. Thus, up to alpha(0)L = 20, only when the rate-equation approximatio
n is valid subhomogeneous linewidths are expected. [S1050-2947(98)0770
8-7]