Photoswitches and dyes in the liquid crystalline nematic phase have the potential for use within a wide range of applications. A high order parameter is desirable in order to maximize the change in properties induced by an external stimulus. A set of photochromic and non-photochromic dyes were investigated for these applications. It was found that a bent-shaped 7-substituted dihydroazulene (DHA) photoswitch exhibited liquid crystalline properties. Further investigation demonstrated that this material actually underwent two distinctive reaction pathways upon heating to a deactivated form via a 1,5-sigmatropic shift and to a linear 6-substituted DHA. In addition, elimination of hydrogen cyanide from these photoactive DHAs gave both bent and linear azulene dyes. In a nematic host, which has no absorbance around 350 nm, it was found that only the linearly shaped DHA derivative possessed nematic properties; however, both 6-and 7-substituted DHAs were found to have high order parameters. In the nematic host, ring opening of either DHA to the corresponding vinylheptafulvene (VHF) resulted in a decrease in dichroic order parameter and an unusually fast back reaction to a mixture of both DHAs. Likewise, only the linearly shaped azulene derivative showed mesomorphic properties. In the same nematic host, high order parameters were also observed for these dyes.