The demand for reliable obstacle warning and avoidance capabilities to ensure safe low-level flight operations has led to the development of various practical systems suitable for fixed and rotary wing aircraft. State-of-the-art Light Detection and Ranging (LIDAR) technology employing eye-safe laser sources, advanced electro-optics and mechanical beam-steering components delivers the highest angular resolution and accuracy performances in a wide range of operational conditions. LIDAR Obstacle Warning and Avoidance System (LOWAS) is thus becoming a mature technology with several potential applications to manned and unmanned aircraft. This paper addresses specifically its employment in Unmanned Aircraft Systems (UAS) Sense-and-Avoid (SAA). Small-to-medium size Unmanned Aerial Vehicles (UAVs) are particularly targeted since they are very frequently operated in proximity of the ground and the possibility of a collision is further aggravated by the very limited see-and-avoid capabilities of the remote pilot. After a brief description of the system architecture, mathematical models and algorithms for avoidance trajectory generation are provided. Key aspects of the Human Machine Interface and Interaction (HMI²) design for the UAS obstacle avoidance system are also addressed. Additionally, a comprehensive simulation case study of the avoidance trajectory generation algorithms is presented. It is concluded that LOWAS obstacle detection and trajectory optimisation algorithms can ensure a safe avoidance of all classes of obstacles (i.e., wire, extended and point objects) in a wide range of weather and geometric conditions, providing a pathway for possible integration of this technology into future UAS SAA architectures.