Modulational instability in optical Bragg gratings with a quadratic nonline
arity is studied. The electric field in such structures consists of forward
and backward propagating components at the fundamental frequency and its s
econd harmonic. Analytic continuous wave (CW) solutions are obtained, and t
he intricate complexity of their stability, due to the large number of equa
tions and number of free parameters, is revealed. The stability boundaries
are rich in structures and often cannot be described by a simple relationsh
ip. In most cases, the CW solutions are unstable. However, stable regions a
re found in the nonlinear Schrodinger equation limit, and also when the gra
ting strength for the second harmonic is stronger than that of the first ha
rmonic. Stable CW solutions usually require a low intensity. The analysis i
s confirmed by directly simulating the governing equations. The stable regi
ons found have possible applications in second-harmonic generation and dark
solitons, while the unstable regions maybe useful in the generation of ult
rafast pulse trains at relatively low intensities. [S1063-651X(99)03005-6].