Femtosecond laser interaction with dielectrics has unique characteristics for micromachining, notably non-thermal interaction with materials, precision and flexibility. The nature of this interaction is highly nonlinear due to multiphoton ionization, so the laser energy can be nonlinearly absorbed by the material, leading to permanent change in the material properties in a localized region of Mu-m3. This dissertation demonstrated the potential of these nonlinear interactions induced changes (index modification and ablation for machining) in the dielectrics and explored several practical applications. We studied femtosecond laser ablation of Poly-methayl methacrylate (PMMA) under single and multiple pulse irradiation regimes. We demonstrated that the onset of surface ablation in dielectric surface is associated with surface swelling, followed by material removal. Also, the shape of the ablation craters becomes polarization dependent with increasing fluence, except for circular polarization. The morphology of the damaged/ablated material was examined by optical and scanning electron microscopy. The dynamics of laser ablation of PMMA was simulated using a 2 dimensional Molecular Dynamics model and a 3 dimensional Finite Difference Time Domain model. The results from numerical simulations agreed well with experimental results presented in this thesis. We also demonstrated the formation of nano-pillar within the ablation crater when the surface of bulk-PMMA was irradiated by two femtosecond pulses at a certain delay with energies below single shot ablation threshold. With increasing fluence, the nano-pillar vanished and the structure within the ablation crater resembled volcanic eruption. At higher fluences we demonstrated nanoscale porosity in PMMA. For application, a novel in-line fiber micro-cantilever was fabricated in bend insensitive fiber, that provides details of in-line measurement of frequency and amplitude of vibration, and can be further extended to be used as chemical/bio and temperature sensors. By modifying the refractive index at random spacing within the single mode fiber core, a unique quasi-random micro-cavities fiber laser was fabricated, which exhibits comparable characteristics with a commercial fiber laser in terms of narrow linewidth and frequency stability.