Intrinsic and extrinsic defects are at the origin of photorefraction. Donor and acceptor defects define the properties of the photorefractive response in particular its dispersive behavior. This enables, e.g., targeted material design by incorporation of extrinsic defects in photorefractive media. Vice versa, defect physics benefits from photorefraction, i.e., photorefraction is successfully applied in defect studies and material analysis. Concepts for investigations make use of the great variety of nonlinear photorefractive phenomena. These include the appearance of a transient light‐induced absorption, two‐wave mixing at one‐dimensional photonic gratings, photo‐assisted self‐assembly of photonic gratings and space‐charge waves originating from oscillating photonic gratings. (© 2007 WILEY‐VCH Verlag GmbH & Co. KGaA, Weinheim)