A haze-free light modulating polymer dispersed liquid crystal (PDLC) material is disclosed which comprises a polymer matrix which is birefringent and possesses anisotropic optical properties similar to those of the dispersed liquid crystal microdroplets such that the PDLC material in its transparent state exhibits a refractive index that is matched for all directions of incident light providing for an optically clear, scatter-free film for all angles of view. Electrooptic light shutters are possible from this material which are transparent in the field OFF-state and opaque in the field ON-state or vice versa, depending upon the microdroplet structure and configuration of the light shutter device.