Non-linear optical (NLO) features of 3-[(4-Nitrophenyl Azo)]-9H-Carbazole-9-Ethanol (NPACE) chromophore were investigated by FT-IR, FT-Raman, and UV–visible spectra aided by Density Functional Theory (DFT) using the B3LYP/6–311++G(d,p) basis set of Gaussian 16 W package. It is observed from the DFT calculation that the slight increase in the endocyclic angle of C13 -C14 -C15 and the reduction in exocyclic angle of N40 –N39 -C14 and C15 -C14 –N39 ascertained by experimental XRD values indicating the intramolecular charge-transfer interaction between the carbazole and nitrophenyl group through the diazo bridge. The vibrational contribution to the linear electro-optic effect is 15% of the total hyperpolarizability being calculated at B3LYP/6–311++G (d, p) for the NPACE molecule. It is also observed that the 8a, 19a, and 19b modes of the carbazole ring and the 8a, 8b, and 19b modes of the phenyl ring are found to be simultaneously and intensely active in IR and Raman spectra explaining the charge transfer interactions throughout the molecule. The low value of the HOMO- LUMO energy gap (2.5843 eV) and the deviation between the measured absorption wavelength (3.36 eV) from the computed (3.87 eV), both these facts substantiate the intramolecular charge transfer. The polarizability and first-order hyperpolarizability were calculated as 6.48 × 10-24 and 3.8 × 10-29 esu, respectively. The second harmonic generation (SHG) measurement experiment of NPACE was carried out using the powder method. The SHG efficiency is measured in comparison with the urea standard. The calculated torsional mode at 20 cm−1 is in excellent quantitative agreement with the experimentally determined terahertz absorption peak. The two-photon absorption coefficient of NPACE was estimated to be 0.9 × 10-11 mW−1, which is mainly due to the D-π-A type of molecular structure, and the optical limiting threshold for NPACE was estimated to be 1.52 × 1013 Wm−2 enabling this material as a potential candidate for optical limiting applications.