The lasers could be used to treat tumours and for high precision cutting
Dundee University is leading an £8m European project to develop a new generation of biomedical lasers.
The new equipment should be much smaller and more efficient than current lasers, which are not portable and use a lot of energy.
The devices will be used in microscopy and nanosurgery, where high precision cutting is necessary.
Five new research posts will be created in Dundee using some of the money given for the four-year project.
Professor Edik Rafailov, from the University of Dundee, said: "This project will revolutionise the use of lasers in the biomedical field, providing both practitioners and researchers with pocket sized ultra high performance lasers at a substantially lower cost which will make their widespread use affordable."
Dr Graeme Malcolm, of M-Squared Lasers Ltd, added: "A step change improvement in the cost, size and robustness of ultrafast lasers is needed before they can benefit biomedical applications fully.
"Technologies developed will enable these lasers to migrate from the bench-top to hospitals and laboratories."