Quantum dots in photonic crystals are interesting because of their potential in quantum information processing 1,2 and as a testbed for cavity quantum electrodynamics. Recent advances in controlling 3,4 and coherent probing 5,6 of such systems open the possibility of realizing quantum networks originally proposed for atomic systems [7][8][9] . Here, we demonstrate that non-classical states of light can be coherently generated using a quantum dot strongly coupled to a photonic crystal resonator 10,11 . We show that the capture of a single photon into the cavity affects the probability that a second photon is admitted. This probability drops when the probe is positioned at one of the two energy eigenstates corresponding to the vacuum Rabi splitting, a phenomenon known as photon blockade, the signature of which is photon antibunching 12,13 . In addition, we show that when the probe is positioned between the two eigenstates, the probability of admitting subsequent photons increases, resulting in photon bunching. We call this process photon-induced tunnelling. This system represents an ultimate limit for solid-state nonlinear optics at the single-photon level. Along with demonstrating the generation of non-classical photon states, we propose an implementation of a single-photon transistor 14 in this system.The optical system consists of a self-assembled InAs quantum dot with decay rate γ /2π ≈ 0.1 GHz coupled to a three-hole defect cavity 15 in a two-dimensional GaAs photonic crystal, as described in ref. 5. The quantum-dot/cavity coupling rate g /2π = 16 GHz equals the cavity field decay rate κ/2π = 16 GHz (corresponding to a cavity quality factor Q = 10,000), which puts the system in the strong coupling regime 10,11 . We first characterize the system in photoluminescence by pumping the structure above the GaAs bandgap. The photoluminescence scans in Fig. 1b show the anticrossing characteristic of strong coupling between the quantum dot and the cavity. Here, the quantum dot is tuned into resonance using local temperature tuning 16 around an average temperature of 20 K maintained in a continuous He flow cryostat. To generate non-classical light, we coherently probe the system with linearly polarized laser beams (Fig. 1a) and observe the cross-polarized output, as described in our previous work 5 . The cross-polarized set-up enables us to separate the cavity-coupled signal from the direct probe reflection, which is essential for achieving large signal-to-noise ratios needed in autocorrelation measurements. Figure 1 Schematic diagram of the experimental set-up. a, Laser pulses (40 ps FWHM) are reflected from a photonic crystal cavity that is linearly polarized at 45 • relative to the input polarization set by the polarizing beam splitter (PBS). The output light, observed in cross-polarization and carrying the cavity-coupled signal, is analysed using an HBT set-up that measures second-order correlation. The inset shows the suspended structure with the photonic crystal cavity and the metal pad for local temperature tuni...