THE FUNDAMENTALS OF DEFECT DETECTION ARE PRESENTED. BECAUSE THE INTERACTION OF DEFECTS AND LIGHT IS CRITICAL TO DETECTION, THESE INTERACTIONS ARE EXPLAINED. THE IMPORTANCE OF SEPARATE BRIGHT-FIELD AND DARK-FIELD VIDEO CHANNELS FOR DETECTING AND CLASSIFYING DEFECTS IS EMPHASIZED. TRADITIONAL LASER INSPECTION TECHNOLOGY IS REVIEWED. A GAP ANALYSIS, WHICH DESCRIBES DETECTION REQUIREMENTS AND SYSTEM CAPABILITIES, IS PROVIDED. RETRO-REFLECTIVE LASER TECHNOLOGY IS DESCRIBED AND DEFECT DETECTION CAPABILITIES COMPARED WITH TRADITIONAL LASER SYSTEMS. IT IS SHOWN THAT RETRO-REFLECTIVE LASER INSPECTION SYSTEMS REPRESENT SUBSTANTIAL BENEFITS OVER TRADITIONAL LASER TECHNOLOGIES.