An optical parametric oscillator (OPO) is a parametric oscillator that oscillates at optical frequencies. It converts an input laser wave with frequency into two output waves of lower frequency by means of second-order nonlinear optical interaction. The sum of the output waves' frequencies is equal to the input wave frequency: . For historical reasons, the two output waves are called "signal" and "idler", where the output wave with higher frequency is the "signal". A special case is the degenerate OPO, when the output frequency is one-half the pump frequency, , which can result in half-harmonic generation when signal and idler have the same polarization.

A parametric oscillator is a driven harmonic oscillator in which the oscillations are driven by varying some parameters of the system at some frequencies, typically different from the natural frequency of the oscillator. A simple example of a parametric oscillator is a child pumping a playground swing by periodically standing and squatting to increase the size of the swing's oscillations. The child's motions vary the moment of inertia of the swing as a pendulum. The "pump" motions of the child must be at twice the frequency of the swing's oscillations. Examples of parameters that may be varied are the oscillator's resonance frequency and damping .