The Microchannel Spatial Light Modulator (MSLM) is a versatile, optically-addressed, highly -sensitive device that is well suited for low-light-level, real-time, optical information processing. It consists of a photocathode, a microchannel plate (MCP), a planar acceleration grid, and an electro-optic plate in proximity focus. A framing rate of 20 Hz with full modulation depth, and 100 Hz with 20% modulation depth has been achieved in a vacuum-demountable LiTaO3 device. A halfwave exposure sensitivity of 2.2 nJ/cm2 and an optical information storage time of more than 2 months have been achieved in a similar gridless LiTaO3 device employing a visible photocathode. Image processing operations such as analog and digital thresholding, real-time image hard clipping, contrast reversal, contrast enhancement, image addition and subtraction, and binary level logic operations such as AND, OR, XOR, and NOR can be achieved with this device. This collection of achievable image processing characteristics makes the MSLM potentially useful for a number of smart sensor applications.