Degradation of optical coatings due to physical damage (dust erosion, scratches) and laser damage pose severe challenges for military optical systems, which must operate in challenging environments. In many cases when an optical coating is degraded, system performance is compromised, and the system must be taken out of service while the optic is repaired or replaced. Some systems must be returned to the manufacturer for service in a clean room environment. Ability of coatings to self-heal when damaged would increase readiness and decrease sustainment costs for critical military optical systems. TIAX will develop optical coatings with self-healing capability, beginning with a proof-of-concept one-layer coating in Phase I. In Phase II we will develop multilayer coatings for a system of Army interest.