We present recent progress in development of liquid crystalline optically addressed spatial light modulator, its characterisation and performances. The spatial light modulator is based on photoconducting polymer - nematic liquid crystal hybrid structure and is used in various configurations of holographic recording and reconstruction. The refractive index gratings arising in a system with photoconducting electrode layer are tilted and phase shifted with respect to the light intensity pattern therefore allowing for an extremely efficient energy transfer between the incoming beams. Depending on optical systems used, several useful optical devices have been constructed by us, like: phase conjugate mirrors, Fourier optical correlators for pattern recognition, coherent light amplifiers, incoherent-to-coherent light converters. Their performances are directly linked with physical properties of used materials and the principal photorefractive mechanism which will discussed.