Most experimental demonstrations of entanglement require nonclassical states and correlated measurements of single-photon detection events. It is shown here that entanglement can produce a large decrease in the rate of two-photon absorption for a classical input state that can be observed using classical detectors. These effects can be interpreted as being due to the creation of entangled photon holes that are somewhat analogous to the holes of semiconductor theory.Entanglement is one of the most fundamental properties of quantum systems and it plays a major role in quantum information processing, for example. Here we show that a classical input state incident on a threelevel atomic medium will undergo two-photon absorption [1][2][3][4][5][6][7][8][9][10][11][12][13] at a rate that is greatly reduced by the generation of entangled photon holes that are somewhat analogous to the holes of semiconductor theory. The effects of entanglement can then be observed using a classical detector, such as an intensity meter. The entangled photon holes can also violate Bell's inequality if single-photon detectors are used.Many nonclassical features of two-photon absorption have already been described [3][4][5][6][7][8][9][10][11][12], including an enhanced rate of two-photon absorption when the incident photons are entangled [3,[8][9]12]. The pairs of photons from parametric down-conversion are known to have been emitted at nearly the same time, but that time is completely uncertain in the quantummechanical sense, as illustrated in Fig. 1a [14]. The fact that the photons are incident on any given atom at the same time while their total energy is still well defined gives rise to an increase in the rate of two-photon absorption, which can be linearly dependent on the intensity of the incident beam [8][9]12].The situation of interest here is essentially the inverse of parametric down-conversion, as illustrated in Fig 1b. In the limit of large detunings, three-level atoms will absorb pairs of photons at very nearly the same time, producing a decrease in the probability amplitude for both of the photons to be at the same location. In analogy with the holes of semiconductor theory, the reduced probability amplitudes of Fig. 1b can be viewed as entangled photon holes in an otherwise constant background. Entanglement of this kind can reduce the rate of two-photon absorption to a level that is substantially less than that of classical or semiclassical theory. Roughly speaking, the magnitude of the dips in the probability amplitude will continue to increase until there is no significant probability amplitude for two photons to be found at the same location.The state vectors corresponding to the probability amplitudes of Figs 1a and 1b cannot be written as the product of two single-particle states and both systems are thus in an entangled state. One way to demonstrate the entanglement is by showing that Bell's inequality can be violated, as will be done later in the paper after we first consider the macroscopic effects of the entangled ph...