We report here the feasibility of coupling an image intensifier tube directly with the ac liquid crystal light valve, which is briefly described and characterized in the paper, to form a compact, real-time, incoherent-to-coherent image converter. This hybrid device is capable of sensing image intensity levels of less than 10-6 In addition, the same combination can be used as an image amplifier with an intensity gain of up to 10. In the experiments performed we mated an 18 mm aperture micro-channel plate inten-sifier image tube, with a fiber optic faceplate output, with a 50 mm aperture hybrid field effect liquid crystal that has a fiber optic faceplate input. With an incoherent input image intensity of 3 x 10 ft-candle we observed a limiting resolution of 16 1P/mm in the output coherent image. This resolution limit is determined primarily by the image intensifier tube. MTF data for the hybrid device and the components are also presented, along with a photograph of gray scale image capability. The use of other types of image intensifier tubes, such as those having image storage capability, with the light valve is discussed and performance ranges given. Next we summarize the possible uses of the hybrid device to increase the usefulness of real-time optical data processing. Finally, we describe the application of this device to wavelength conversion and image amplification to provide the large screen projection of dynamic ac plasma panel display imagery.