A critical review of laser induced nonlinear index changing mechanisms in l
iquid crystals is presented. In some azo-compound doped nematic films, we h
ave observed nonlinear index coefficient much greater than 1 cm(2)/W. The s
upra optical nonlinearities are attributed to photorefractivity, order para
meter modification and dopant-nematic intermolecular torques, Using these n
ematic films, we show that it is possible to perform image processing with
muW/cm(2) optical intensity, and optical limiting with muW power lasers.