Acousto-optic hybrid bistable devices have been studied previously. However, previous studies are limited only to the first-Bragg regime involving two diffracted orders. No actual comparison has been made between experimental results and theoretical predictions. A model including both acousto-optic diffraction and a nonlinear feedback path is studied in this thesis. Theoretical results based on diffraction involving two and four diffracted orders have been obtained and compared. Experimental results confirm the validity of the theoretical model. The principle of operation is discussed along with experimental results. The performance of the bistable system is then studied. In the investigation, the Klein-Cook parameter, Q, has been introduced into the study. Methods to improve the performance of the system with a low Q acousto-optic device by adjusting the effective feedback gain and the operation point are suggested. Finally, a technique to measure the effective feedback gain has been derived. Future topics are suggested along with a modified and improved model.