Thermally induced optical storage and erasure (local and nonlocal) of scattering centers in thin films of smectic liquid crystals has been demonstrated. These new thermo‐optic and electrothermo‐optic effects provide the basis for what is believed to be the first practical application of smectic liquid crystals, an infrared‐laser‐addressed light valve for the recording, storage, and display of high‐resolution graphic images.