Indiana University-Purdue University Indianapolis (IUPUI) / In the first part of this thesis, we investigate the propagation of quantum fluctuations in a nonlinear interferometer comprising under conditions of harmonic generation by computer simulations. This investigation assumes idealized conditions such as lossless and uniform nonlinear media, an ideal cavity and ideal photodetectors. After linearizing wave equations for harmonic generation with a coherent state input, we obtain equations for one dimensional spatial propagation of the mean field and quantum fluctuations for initial conditions set by arbitrary interferometer phase. We discover that fluctuations are de-squeezed in the X and Y quadratures as the interferometer phase is tuned. However, we discover that there is are quadratures P-Q obtained by rotating the X-Y quadratures for which squeezing is improved by factors of 10^9. We present a practical idea to implement rotation of X quadrature fluctuations to the Q quadrature by using an ideal empty optical cavity. Signal-to-Noise ratio of the nonlinear interferometer was calculated and compared with that of a linear interferometer with coherent state input. We calculated a maximum performance improvement of a factor of 60 for a normalized propagation length ζ0 = 3 under ideal conditions. In the second part of this thesis, we investigate experimentalarrangements to transfer atomic coherence from light to cesium atoms. We discuss the experimental arrangement to generate coherence under conditions of electromagnetically induced transparency (EIT). We measure a continuous wave EIT width of 7.18 MHz and present results for pulsed arrangements.