The laser pointer was originally invented as a handy tool for lecturers or speakers to focus attention on particular part of a screen or chalkboard. But since the early 90s, these devices have become extremely cheap, and are now bought primarily for the sake of being a novelty electronics item.

Most laser pointers use a 630 nm wavelength red laser diode, and are available very cheaply - usually between $1 and $10. Handheld lasers typically output about 5 mW (milliwatts) of power, making them Class IIIa laser devices which means that they are safe for consumer use.

Green laser pointers have a 532 nm wavelength, and are about 50 times stronger than red laser pointers. These green lasers are viewable in mid-air (whereas red lasers generally are not), with a very long range of as far as 2.5km in heavy darkness. Green lasers are more expensive than red lasers, costing $50-$100. Even shorter-wavelength blue lasers are also in development. Laser pointers are typically about 1mm wide at their source, and decohere over time. Some laser pointers produce light at a wavelength higher than the visible spectrum, which is then filtered through a frequency doubler to produce visible light.

Laser pointers are used as cat toys, sights for firearms, tools for optics experiments, to play with, and for presentations. Laser pointers have frequently been used to pull pranks, some of them dangerous. They have been shined in the eyes of aeroplane pilots, truck drivers, musicians, and others appearing onstage. For this reason, health agencies have issued strong warnings against the use of laser pointers for mischevious purposes, and these devices are often forbidden from concert halls and sporting events. It is illegal to shine a laser pointer at a police officer, for example.

Inexpensive laser pointers, in conjunction with a few other inexpensive devices, have been successfully used by hobbyists to produce high-quality holograms. They have also been used to blind security cameras. Some nations have worked on superpowered laser pointers as antipersonnel weapons, but a U.N. resolution adopted in 1996 forbids the use of lasers in warfare. These lasers, not always above the blinding threshold, are often referred to as "dazzlers".