Recent topics and puzzling problems in nonlinear optical dynamics have been reviewed, focusingon physics and chaotic dynamics of laser-diode-pumped microchip solid-state lasers. Some attractive current issues in nonlinear dynamics of optical complex systems, including factorial dynamical pattern memory, chaos synchronization and chaotic itinerancy, have been discussed. Promising applications to ultrahigh-sensitivity selfmixing optical sensors and a green laser without green problem have been demonstrated.