Measurements were made of the intensity of light transmitted through various thicknesses of normal human blood confined between two parallel plane surfaces, one fixed and the other oscillating in its own plane. When the light propagation direction is perpendicular to the direction of shear flow the transmitted intensity contains a steady component and a dominant second harmonic of the oscillation frequency. For a thin layer of blood, the steady intensity is a minimum value when the oscillation amplitude produces unit strain. The second harmonic is very small at small strains, but increases rapidly near unit strain where it is approximately in phase with the strain. For thicker layers, the effects of viscoelastic shear waves reduce the size of the second harmonic and modify its phase. Changes in light transmission are interpreted by relating the optical density of the blood to the total amount of contact between red cells. In oscillatory flow at low strains (less than 1) cell-to-cell contact is reduced by disaggregation of cell groups, and light transmission decreases. Near unit strain, disaggregation becomes complete, cell alignment occurs, and light transmission is minimized. At higher strains cell-to-cell contact is increased by formation of aligned layers of compacted cells separated by parallel plasma layers, and light transmission increases.