Abstract: A light modulating material consisting of droplets of liquid crystal in a clear or light transmitting, flexible plastic sheet or film, such as a cured epoxy. The light modulating material is prepared by dissolving liquid crystal in an uncured resin and then curing the resin so that droplets of liquid crystal spontaneously form and are uniformly dispersed throughout the sheet or film. The new material shows a reversible, high contrast optical response from an opaque scattering mode to a clear light transmission mode when either the temperature of the material is changed to transform the liquid crystal into the isotropic phase or an electric field is applied across the material. The material is optically responsive to strain, whereby under tension it acts to polarize incident light. Curing the material in the presence of an applied field also causes it to act as an electrically addressable polarizer.