In this paper, two chemically synthesized organic azo dyes, 2-(2,5-Dichloro-phenyazo)-5,5-dimethyl-cyclohexane-1,3-dione (azo dye (i)) and 5,5-Dimethyl-2-tolylazo-cyclohexane-1,3-dione (azo dye (ii)), have been studied from optical Kerr nonlinearity point of view. These materials were characterized by Ultraviolet-visible spectroscopy. Experiments were performed using a continous wave diode-pumped laser at 532nm wavelength in three intensities of the laser beam. Nonlinear absorption (β), refractive index (n2) and third-order susceptibility (χ(3)) of dyes, were calculated. Nonlinear absorption coefficient of dyes have been calculated from two methods; 1) using theoretical fits and experimental data in the Z-scan technique, 2) using the strength of nonlinearity curves. The values of β obtained from both of the methods were approximately the same. The results demonstrated that azo dye (ii) displays better nonlinearity and has a lower two-photon absorption threshold than azo dye (i). Calculated parameter related to strength of nonlinearity for azo dye (ii) was higher than azo dye (i), It may be due to presence of methyl in azo dye (ii) instead of chlorine in azo dye (i). Furthermore, The measured values of third order susceptibility of azo dyes were from the order of 10−9esu. These azo dyes can be suitable candidate for optical switching devices.