This paper reviews some of our recent results in nonlinear atom optics. In
addition to nonlinear wave-mixing between matter waves, we also discuss the
dynamical interplay between optical and matter waves. This new paradigm, w
hich is now within experimental reach, has the potential to impact a number
of fields of physics, including the manipulation and applications of atomi
c coherence, and the preparation of quantum entanglement between microscopi
c and macroscopic systems. Possible applications include quantum informatio
n processing, matter-wave holography, and nanofabrication.