We show that the recently demonstrated technique for generating stationary pulses of light [Nature 426, 638 (2003)] can be extended to localize optical pulses in all three spatial dimensions in a resonant atomic medium. This method can be used to dramatically enhance the nonlinear interaction between weak optical pulses. In particular, we show that an efficient Kerr-like interaction between two pulses can be implemented as a sequence of several purely linear optical processes. The resulting process may enable coherent interactions between single photon pulses.Techniques that could facilitate controlled nonlinear interactions between few-photon light pulses are now actively explored [1]. Although research into fundamental limits of nonlinear optics has been carried out over the last three decades, there is renewed interest in these problems in part due to e.g. potential applications in quantum information science [2]. In general, such interactions between few-photon pulses are difficult to achieve, as they require a combination of large nonlinearity, low photon loss and tight confinement of the light beams [3]. In addition, long atom-photon interaction times are required. Simultaneous implementation of all of these requirements is by now only feasible in the context of cavity QED [4].In this Letter we describe a novel method for achieving nonlinear interaction between weak light pulses. Our method is based on a recently demonstrated technique [5,6] in which light propagating in a medium of Rb atoms was converted into an excitation with localized, stationary electromagnetic energy, which could be held and released after a controllable interval. This is achieved by using Electromagnetically Induced Transparency (EIT) [7] to coherently control the pulse propagation. We show here that this method can be extended to confine stationary pulses in all three spatial dimensions. This, in turn, can be used to strongly enhance the nonlinear interaction between weak pulses of light. Specifically we demonstrate that an efficient Kerr-like interaction between two pulses can be implemented as a sequence of linear optical processes and atomic state manipulations. Coherent, controlled nonlinear processes at optical energies corresponding to a single light quanta appear feasible.Before proceeding, we note that the present work is closely related to recent studies on the resonant enhancement of nonlinear optical phenomena via EIT [8,9,10,11]. The essence of these studies is to utilize steep atomic dispersion associated with narrow EIT resonances. In such a system, a small AC Stark shift associated with a weak off-resonant pulse of signal light, produces a large change in refractive index for a resonant probe pulse. In order to fully take advantage of this process, long interaction times between signal and probe pulses must be ensured. Although the latter can be achieved by reducing the group velocities of two interacting pulses by equal amounts [12], in practice this results only in a modest increase of the nonlinear optical effici...