In modern Night Vision Devices (NVDs) halo around bright light sources remains a salient imaging artifact. Although a common feature of image intensified imagery, little is known of the perceptual and operational effects of this device limitation. This paper describes two related sets of experiments. In the first set of experiments, we provide quantitative measurements of Night Vision Device (NVD) halos formed by light sources as a function of intensity and distance. This characterization allows for analysis of the possible effects of halo on human perception through NVDs. In the second set of experiments, the effects of halation on the perception of depth and environmental layout are investigated psychophysically. The custom simulation environment used and results from psychophysical experiments designed to analyze halo-induced errors in slope estimation are presented.