The light from LEDs can be modulated very quickly so they are used extensively in optical fiber and free space optics communications. This includes remote controls, such as for TVs, VCRs, and LED Computers, where infrared LEDs are often used. Opto-isolators use an LED combined with a photodiode or phototransistor to provide a signal path with electrical isolation between two circuits. This is especially useful in medical equipment where the signals from a low-voltage sensor circuit (usually battery-powered) in contact with a living organism must be electrically isolated from any possible electrical failure in a recording or monitoring device operating at potentially dangerous voltages. An optoisolator also allows information to be transferred between circuits not sharing a common ground potential.

Where are LEDs often used?