A simplified energy‐level scheme is proposed for the photochemical cycle of the bacteriorhodopsin molecule. Rate equations are solved for the detailed light‐induced processes based on this model and the intensity‐induced population densities in various states of the molecule at steady state are computed which are used to obtain an analytic expression for the absorption coefficient of the modulation beam. Modulation of the probe laser‐beam transmission by the modulation‐laser‐beam intensity‐induced population changes is analyzed. It is predicted that for a probe beam at 412 nm up to 82% modulation can be achieved using a laser beam intensity of 3.2 W/cm2at 570 nm. For temperatures ∼77 K, the transmission at 610 nm can be switched from zero to 81% for modulating laser intensity of 11 W/cm2. Construction of a spatial light modulator based on bacteriorhodopsin molecules is proposed and some of its features are discussed. ©1995 American Institute of Physics.