This paper outlines the latest developments in two-photon excitation laboratory instrumentation using low-cost laser equipment. Our research group has shown that application of two-photon excitation need not to be limited to those laboratories that can afford the price and maintenance of ultrafast laser systems. With certain compromises and well-designed experiments, low-cost lasers, such as the Q-switched Nd:YAG microchip laser, can be used in utilizing the positive properties of two-photon excitation. Results using microparticles or cells as bioactive carriers confirm this fact. Application examples from biomedical research as well from clinical environment are presented.