We present results from trials of the LUCIE 2 (Laser Underwater Camera Image Enhancer) conducted in Halifax Harbor, Nova Scotia, Canada and Esquimalt Harbor, Victoria, British Columbia, Canada. LUCIE 2 is a new compact laser range gated camera (10 inches in diameter, 24 inches in length, and neutrally buoyant in water) originally designed to improve search and recovery operations under eye safe restrictions. The flexibility and eye safety of this second generation LUCIE makes it a tool for improved hull searches and force protection operations when divers are in the water attempting to identify bottom lying objects. The camera is equipped with a full image geo-positioning system. To cover various environmental and targets size conditions, the gate-delay, gate width, polarization and viewing and illuminating angles can be varied as well. We present an analysis on the performance of the system in various water conditions using several target types and a comparison with diver and camera identification. Coincident in-situ optical properties of absorption and scattering were taken to help resolve the environmental information contained in the LUCIE image. Several new capabilities are currently being designed and tested, among them a differential polarization imaging system, a stabilized line of sight system with step-stare capability for high resolution mosaic area coverage, a precision dimensioning system and a diver guided and operated version.