Laser-generated plasma gratings are dynamic optical elements for the manipulation of coherent light at high intensities, beyond the damage threshold of solid-stated based materials. Their formation, evolution and final collapse require a detailed understanding. In this paper, we present a model to explain the nonlinear dynamics of high amplitude plasma gratings in the spatially periodic ponderomotive potential generated by two identical counter-propagating lasers. Both, fluid and kinetic aspects of the grating dynamics are analyzed. It is shown that the adiabatic electron compression plays a crucial role as the electron pressure may reflect the ions from the grating and induce the grating to break in an X-type manner. A single parameter is found to determine the behaviour of the grating and distinguish three fundamentally different regimes for the ion dynamics: completely reflecting, partially reflecting/partially passing, and crossing. Criteria for saturation and life-time of the grating as well as the effect of finite ion temperature are presented.Introduction. Plasma optical elements are gaining increasing importance for the manipulation of coherent light from high-power lasers. This is due to the much higher fluences plasmas can support compared to solidstate optical devices. However, plasmas are dynamic entities with a finite lifetime. It is therefore important to undestand in detail the generation, transient phase and saturation mechanisms of plasma-based optical elements.Generating quasi-neutral gratings by intersecting laser pulses in under-dense plasmas or at the plasma surface has been proposed leading to many interesting applications [1-16], e.g. photonic crystals [11], polarizers & waveplates [13], holograms [10], surface plasma waves excitation [7], etc. These gratings are particularly interesting to manipulate intense lasers up to picosecond duration. Multi-dimensional PIC (particle-incell) simulations predict the existence of gratings and they have been indirectly observed in experiments of strong-coupling stimulated Brillouin scattering (sc-SBS) amplification [17][18][19][20]. However, up to now, an in-depth understanding of the growth and saturation of plasma gratings, supported by analytical model, is still lacking. While early studies identifed the important role of ion nonlinearities and X-type wavebreaking in the saturation of the ion fuctuations, simplified model equations were used and the existence of a driver was not considered [4,[21][22][23]. More recent studies have emphasized the importance of the driver on the electrons, while imposing quasi neutrality for the plasma fuctuations and ballistic ions, and including electron temperature effects in an isothermal way [2,[11][12][13]. The isothermal electron response is appropriate in the limit where the transient gratings are ion-acoustic waves that can be driven to large amplitude either resonantly [6,8,9,24,25] or nonresonantly [26,27].