Photoalignment of liquid crystals by using azo dye molecules is a commonly proposed alternative to traditional rubbing alignment methods. Photoalignment mechanism can be well described in terms of rotational diffusion of azo dye molecules exposed by ultraviolet polarized light. A specific feature of the irradiated light is the intensity dependent change of azimuthal anchoring of liquid crystals. While there are various mechanisms of azo dye photoalignment, photo-reorientation occurs when dye molecules orient themselves perpendicular to the polarization of incident light. In this review, we describe both recent achievements in applications of photoaligned liquid crystal cells and its simulation. A variety of display and photonic devices with azo dye aligned nematic and ferroelectric liquid crystals are presented: q-plates, optically rewritable flexible e-paper (monochromatic and color), and Dammann gratings. Some theoretical aspects of the alignment process and display simulation are also considered.