We review the theory of light localization due to the combined action of si
ngle or double Bragg coupling between dichromatic counterpropagating envelo
pes and parametric mixing nonlinearities. We discuss existence, stability,
and excitation of such localized envelopes. We also investigate the link be
tween stationary gap solitons and input-output response of nonlinear quadra
tic Bragg gratings. Frustrated transmission and multistable switching is ex
pected to occur under suitable integrable (cascading) limits. Substantial d
eviations from these conditions lead to the onset of spatial chaos. (C) 200
0 American Institute of Physics. [S1054-1500(00)00903-4].