An enhancement of an advanced laboratory course in modern physics for physics majors is proposed. The specific goal is to offer new experiments closely related to present-day research and applications in the areas of atomic physics and condensed matter, in response to a projected increase of students with interests in applied and engineering physics. The project introduces to the laboratory two new experiments: one using a solid state diode laser to do optical pumping and spectroscopy of atoms in an atomic beam and a second experiment involving measurements on a high Tc superconductor. The laser spectroscopy is combined with a Stern-Gerlach experiment to yield a rich variety of atomic physics effects which would be accessible to the undergraduate student. In addition to the Stern-Gerlach effect, the experiment allows demonstrations of: Doppler-free optical spectroscopy, hyperfine structure, optical pumping, radio frequency resonance, and Zeeman effect. The experiment on a high Tc superconductor involves measurements of the persistent current.