System and method for correlation testing of SLMs using stroboscopic methods. A preferred embodiment comprises providing a test pattern to the SLM, configuring a pulsed light source to emit a short duration light pulse at a specified time, instructing the SLM to display the test pattern, emitting the short duration light pulse at the specified time, computing a correlation image based upon light reflected by the SLM, and determining the SLM's performance based upon the correlation image. The pulse of light permits the testing of dynamic and static characteristics of the SLM, while the use of optical computational units in the computation of the correlation image greatly reduces computational requirements and testing time.