With a view to understanding the role of photo-induced valence changes of impurities in BaTiO₃ in the phenomena of photorefraction, EPR experiments were conducted under in situ He-Ne laser illumination. These experiments gave evidence for photoinduced valence change of Fe in BaTiO₃ at room temperature. The EPR signal due to trivalent iron was found to reduce in intensity with laser illumination The kinetics of the valence change has been investigated. Under large fringe width condition, the time constant of the decay is identified as the dielectric relaxation time τ_d. The changes in line shape on laser illumination to Dysonian form, appeared most predominantly in mechanically poled crystal compared to electrically poled single domain crystals. This demonstrated the possible role of domain walls and the defects there, as source or sinks of charge carriers on photo excitation. It is observed, that there is transient growth of Fe³⁺, when the laser illumination was put on, before its decay. This was attributed to charge transfer between electrons in oxygen vacancies and Fe⁴⁺. This predicted the growth of a transient grating under depleted pump condition in a two beam coupling experiment. This was experimentally proved by following the diffracted signal of the reading beam under the depleted pump condition.