We summarize recent results on polarization-bistable vertical-cavity surface-emitting lasers (VCSELs) and their application to optical buffer memory. All-optical flip-flop operation with very low switching energies and high repetition rates is achieved. An optical buffer memory consisting of a two-dimensional array of polarization-bistable VCSELs, in which the bit state of the optical signal, “0” or “1”, is stored as a lasing linear polarization state of 0 or 90°. Input data stored as the polarization states of the first VCSEL are transferred to the polarization states of the second VCSEL. In our experiments with 980 nm polarization-bistable VCSELs, 10 Gbit/s optical buffering, 2-bit optical buffering, and a shift register function have been successfully demonstrated.