We experimentally observe polarization-locked vector solitons in a passivel
y mode-locked fiber laser. The vector soliton pulse is composed of componen
ts along both principal polarization axes of the linearly birefringent lase
r cavity. For certain values of birefringence and pulse energy these compon
ents propagate with a constant relative optical phase of +/- pi/2, and henc
e the pulse has a fixed elliptical polarization state. The linear birefring
ence of the cavity is canceled by the nonlinear birefringence created by th
e unequal amplitudes of the two polarization components. This dynamic equal
ization of the phase velocities of the components results in the stable pro
pagation of an elliptically polarized vector soliton pulse. Under different
conditions we also observe the nonlinear instability of the fast principal
axis as an intracavity pulse linearly polarized along the slow axis of the
cavity. We present the experimental characterization of both the polarizat
ion-locked vector soliton and the fast axis instability and discuss the non
linear mechanism creating both phenomena. (C) 2000 Optical Society of Ameri
ca [S0740-3224(00)01003-1] OCIS codes: 060.5530, 190.4370, 140.4050, 320.70
90, 140.3500.