The optical nonlinearity in polycrystalline zinc selenide (ZnSe), excited with 775 nm, 1 kHz femtosecond laser pulses was investigated via the nonlinear transmission with material thickness and the Z scan technique. The measured two photon absorption coefficient β was intensity dependent, inferring that reverse saturated absorption (RSA) is also relevant dur-ing high intensity excitation in ZnSe. At low peak intensity I < 5 GW cm–2, we find β = 3.5 cm GW–1 at 775 nm. The spec-tral properties of the broad blueish two-photon induced fluorescence (460 nm-500 nm) was studied, displaying self-ab-sorption near the band edge while the upper state lifetime was measured to be τe ～ 3.3 ns. Stimulated emission was ob-served when pumping a 0.5 mm thick polycrystalline ZnSe sample within an optical cavity, confirmed by significant line narrowing from Δλ = 11 nm (cavity blocked) to Δλ = 2.8 nm at peak wavelength λp = 475 nm while the upper state life-time also decreased. These results suggest that with more optimum pumping conditions and crystal cooling, polycrystal-line ZnSe might reach lasing threshold via two-photon pumping at λ = 775 nm.