For the past five years, Digital Light Processing (DLP) technology from Texas Instruments has made significant inroads in the projection display market. With products encompassing the world's smallest data & video projectors, HDTVs, and digital cinema, DLP is an extremely flexible technology. At the heart of these display solutions is Texas Instruments Digital Micromirror Device (DMD), a semiconductor-based light switch array of thousands of individually addressable, tiltable, mirror-pixels. With success of the DMD as a spatial light modulator in the visible regime, the use of DLP technology under the constraints of coherent, infrared light for optical networking applications is being explored. As a coherent light modulator, the DMD device can be used in Dense Wavelength Division Multiplexed (DWDM) optical networks to dynamically manipulate and shape optical signals. This paper will present the fundamentals of using DLP with coherent wavefronts, discuss inherent advantages of the technology, and present several applications for DLP in dynamic optical networks.