We measure the Kerr-nonlinear index of refraction of a three-level Lambda -
type atomic system inside an optical ring cavity. The Kerr nonlinearity is
modified-and greatly enhanced near atomic resonant conditions for both prob
e and coupling beams. The Kerr nonlinear coefficient n(2) changes sign when
tli coupling beam frequency detuning switches sign, which can lead to inte
resting applications in optical devices such as all-optical switches.