A system for guiding the flight of a projectile to a target. The system comprises a tracking and guidance system, the projectile, and a projectile reference and control system that is part of the projectile. The tracking and guidance system includes a target tracker, a projectile tracker for providing a projectile-tracking laser beam, and a target designator for designating the target using a target-tracking laser beam, and for providing range data indicative of the range to the target. A processor is coupled to the target designator, the target tracker, and the projectile tracker for processing target and projectile return signals and target range signals to generate an actuator command signal that is transmitted by the projectile tracker using the projectile-tracking laser beam and that is used to alter the flight of the projectile. The projectile reference and control system includes an optical reference including polarized and unpolarized retroflectors for reflecting the projectile-tracking laser beam back to the projectile tracker, and a detector that is responsive to the projectile-tracking laser beam provided by the projectile tracker, for detecting the actuator command signal transmitted by the projectile tracker. A command operated actuator is coupled to the detector for processing the actuator command signal and for generating a trajectory modification signal that is used to alter the flight of the projectile. A divert assembly coupled to the command operated actuator for generating thrust that diverts the trajectory of the projectile in response to the trajectory modification signal.