This Small Business Innovation Research Program (SBIR) Phase I project will develop an optical wireless system. The proliferation of wireless devices and new applications are pushing Radio-Frequency (RF) wireless technologies to their limits. Optics can fundamentally alter high-speed wireless communications because, relative to RF, optical systems provide more spectral bandwidth, higher-performance, and freedom from regulatory burdens. However current optical wireless approaches are fixed in nature, limited in data rate, and susceptible to interference. An optical wireless system is proposed that can adjust to optimize performance in many configurations by combining Multiple Input Multiple Output (MIMO) Digital Signal Processing (DSP) techniques with novel, adaptive optical component technology. The anticipated technical results include creating the system architecture, developing the design, and demonstrating key technology.The broader impact/commercial potential of this project includes transformative technology, knowledge generation, and industry-university interaction. The emergence of high-speed broadband Internet access enhanced numerous aspects of American society. The increased bandwidth of optical relative to RF wireless solutions makes dramatically higher data rates possible, transforming wireless applications and societal usage. Commercially the adaptive solution is a major differentiator for optical wireless, enabling optimization by application with a single design to address numerous large consumer and enterprise markets. The emergence of optical wireless technology and the multi-disciplinary nature of the system offer many opportunities for knowledge generation and provide enhanced industry-university interaction.