Optically induced nematic liquid crystal axis reorientation results in extr
aordinarily large nonlinear refractive index changes that could find practi
cal applications in conjunction with cw or long-pulse lasers. We discuss th
e origins of these nonlinearities, and present the results of recent experi
mental studies of image conversion, optical limiting and sensor protection
using aligned dye-doped nematic liquid crystal films in all-optical configu
rations. These processes are characterized by unprecedented low threshold l
aser powers, thus presenting nonlinear photosensitive nematic liquid crysta
ls as promising next generation image processing and optical switching/limi
ting material. (C) 1999 Optical Society of America.