Acousto-optic devices have been analyzed and developed for use as modulators, filters and correlators, and in spectrum analyzers. The ability of the acousto-optic unit to amplitude-modulate, frequency-modulate, and deflect laser beams, makes them suitable for these applications. The various signal processing and control functions provided by the acousto-optic devices are optimized by controlling the ratio of divergence angles of the optical beam and the acoustic beam in the acousto-optic interaction region. Another application of acousto-optic devices is to simulate moving targets to test fuzing altimeters and active missile control systems. The frequency modulation, amplitude modulation, and deflection properties of acousto-optic components are all utilized in a single acousto-optic unit to provide the variable range and Doppler simulation. Development of a suitable acousto-optic component for this simulation application is described, as is a description of a simulator employing this acousto-optic device.