Optically activated particles for use in cosmetic and pharmaceutical compositions are disclosed. The optically activated particles include a solid substrate having a fluorescent compound fixed thereto, and coated or encapsulated with a transparent or translucent coating of crosslinked polyvinyl alcohol. The optically activated particles absorb light at a UV wavelength and emit visible light at longer wavelengths, and are able to both absorb and scatter light in a diffuse manner in order to reduce the visual perception of skin imperfections, including cellulite, wrinkles, shadows, skin discolorations, blotchiness, and mild scars.