This paper describes physics of nonlinear ultra-short laser pulse propagation affected by plasma created by the pulse itself. Major applications are also discussed. Nonlinear propagation of the femtosecond laser pulses in gaseous and solid transparent dielectric media is a fundamental physical phenomenon in a wide range of important applications such as laser lidars, laser micro-machining (ablation) and microfabrication etc. These applications require very high intensity of the laser field, typically 1013–1015 TW/cm2. Such high intensity leads to significant ionisation and creation of electron-ion or electron-hole plasma. The presence of plasma results into significant multiphoton and plasma absorption and plasma defocusing. Consequently, t...