Nanotechnology, once a wonderful dream, is now becoming a reality. In order to selectively modify and construct nanodevices we have to understand how materials transform from one form to another on a nanoscale. Short-pulsed lasers and optical spectroscopic techniques serve as a unique set of tools and methods to initiate and control phase transformations and to study their dynamics on the appropriate time-scale. In my presentation I will review our recent results on the laser-induced phase transformations and outline the current trends of spectroscopic techniques for their diagnostics.