More reliable mode-locking and bandwidth-limited pulses of shorter durations are obtained when the high-reflectivity mirror is ifllnersed in the sa~r-able absorber solutions used to ~ssively mode-lock pulsed and CW dye lasers, Neodym11611 and ruby lasers (1). This result had been previously explained [2,3] by preferential saturation of the absorber at t~e antinodes of the star.din; waves in the neighbourhood of the mirror, particularly when the dye cell length is comparable to the laser pulse length. !~ith the recent demonstration of pha~e conjugation reflection in many materials by degenerate nonlinesr mixing [4] involving local saturation of absorption [SJ it seemed timely to investigate picosecond phase-conjugation in OODCI and other saturaole abscrters c0111110nly used for 110de-lockfng dye lasers. Our results indicate that, in addition to preferential saturation, phase conjugation effects contribute to the improved performance of the i11111ersed mirror mode-locking dye cell, even when the laser beam is focussed bn to the mirror as in the case of C~ dy~ lasers [6}. Photois:imer effects (71 are also shown to be important in t~e phase-conju9ation process, and play a jominating role as t~e lsser is r .. nec to 1 onger wave 1 engths.