Currently slip rings are used to transmit data and power across the rotating rotor interface of helicopters. However, slip rings have not proven to be as reliable as desired in these applications. Data dropouts and noisy measurements occur to an unacceptable degree and frequency. In this Phase I exploratory development effort Saddleback Aerospace has applied optical communications technology and components to create a bi-directional rotor optical data interface (RODI) design. The RODI increases the system's data rates by orders of magnitude (the demonstrator built to van date the RODI concept achieved data rates as high as 10 Mbps in a single channel) and can be retrofitted to existing aircraft. In addition- to data rate improvements, the RODI concept is also highly reliable and robust. The demonstrator was able to meet operating requirements even with 75% occlusion of its optical surfaces and simulated "failure" of multiple components. In Phase II Saddleback will optimize the RODI design and conduct extensive testing including environmental qualification (per MIL-STD-810E) and flight testing on an active rotor helicopter. The rotor optical data interface will facilitate helicopter test programs and the development of active rotor helicopters by providing exceptionally high data rates and reliability. Besides helicopter applications, this device can be also be used on any rotating machinery (turbines, generators, etc.) to realize similar benefits.