Optical data processing techniques have the inherent advantage of high data throughout, low weight and low power requirements. These features are particularly desirable for onboard spacecraft in-situ real-time data analysis and data compression applications. The proposed multi-layer optical holographic neural net pattern recognition technique will utilize the nonlinear photorefractive devices for real-time adaptive learning to classify input data content and recognize unexpected features. Information can be stored either in analog or digital form in a nonlinear photorefractive device. The recording can be accomplished in time scales ranging from milliseconds to microseconds. When a system consisting of these devices is organized in a multi-layer structure, a feed forward neural net with bifurcating data classification capability is formed. The interdisciplinary research will involve the collaboration with top digital computer architecture experts at the University of Southern California.