A dynamic optical grating device and associated method for modulating light is provided that is capable of controlling the spectral properties and propagation of light without moving mechanical components by the use of a dynamic electric and/or magnetic field. By changing the electric field and/or magnetic field, the index of refraction, the extinction coefficient, the transmittivity, and the reflectivity fo the optical grating device may be controlled in order to control the spectral properties of the light reflected or transmitted by the device
