The simulation of light reflected by polymer-dispersed cholesteric liquid crystals is carried out using a model that takes into account the domain structure of the layer. The model is based on the 4×4 matrix calculation method of Berreman. One considers different orientations of the helical axis in multi- and single-domain configurations. The assumption of the distribution of helical axis orientations in the multi-domain model allows the description of optical properties of multi-stable director configurations. Polarization properties of the reflected light are investigated. © 2002 Elsevier Science B.V. All rights reserved.