Spin-orbit (SO) coupling--the interaction between a quantum particle's spin and its momentum--is ubiquitous in physical systems. In condensed matter systems, SO coupling is crucial for the spin-Hall effect and topological insulators; it contributes to the electronic properties of materials such as GaAs, and is important for spintronic devices. Quantum many-body systems of ultracold atoms can be precisely controlled experimentally, and would therefore seem to provide an ideal platform on which to study SO coupling. Although an atom's intrinsic SO coupling affects its electronic structure, it does not lead to coupling between the spin and the centre-of-mass motion of the atom. Here, we engineer SO coupling (with equal Rashba and Dresselhaus strengths) in a neutral atomic Bose-Einstein condensate by dressing two atomic spin states with a pair of lasers. Such coupling has not been realized previously for ultracold atomic gases, or indeed any bosonic system. Furthermore, in the presence of the laser coupling, the interactions between the two dressed atomic spin states are modified, driving a quantum phase transition from a spatially spin-mixed state (lasers off) to a phase-separated state (above a critical laser intensity). We develop a many-body theory that provides quantitative agreement with the observed location of the transition. The engineered SO coupling--equally applicable for bosons and fermions--sets the stage for the realization of topological insulators in fermionic neutral atom systems.

Neutral atomic Bose condensates and degenerate Fermi gases have been used to realize important many-body phenomena in their most simple and essential forms, without many of the complexities usually associated with material systems. However, the charge neutrality of these systems presents an apparent limitation-a wide range of intriguing phenomena arise from the Lorentz force for charged particles in a magnetic field, such as the fractional quantum Hall effect in two-dimensional electron systems. The limitation can be circumvented by exploiting the equivalence of the Lorentz force and the Coriolis force to create synthetic magnetic fields in rotating neutral systems. This was demonstrated by the appearance of quantized vortices in pioneering experiments on rotating quantum gases, a hallmark of superfluids or superconductors in a magnetic field. However, because of technical issues limiting the maximum rotation velocity, the metastable nature of the rotating state and the difficulty of applying stable rotating optical lattices, rotational approaches are not able to reach the large fields required for quantum Hall physics. Here we experimentally realize an optically synthesized magnetic field for ultracold neutral atoms, which is evident from the appearance of vortices in our Bose-Einstein condensate. Our approach uses a spatially dependent optical coupling between internal states of the atoms, yielding a Berry's phase sufficient to create large synthetic magnetic fields, and is not subject to the limitations of rotating systems. With a suitable lattice configuration, it should be possible to reach the quantum Hall regime, potentially enabling studies of topological quantum computation.