We propose dynamic range compression deconvolution by a new nonlinear optical limiter micro-electro-mechanical system (NOLMEMS) device. The NOLMEMS uses aperturized, reflected coherent light from optically addressed, parabolically deformable mirrors. The light is collimated by an array of micro-lenses. The reflected light saturates as a function of optical drive intensity. In this scheme, a joint image of the blurred input information and the blur impulse response is captured and sent to a spatial light modulator (SLM). The joint information on the SLM is read through a laser beam and is Fourier transformed by a lens to the back of the NOLMEMS device. The output from the NOLMEMS is Fourier transformed to produce the restored image. We derived the input-output nonlinear transfer function of our NOLMEMS device, which relates the transmitted light from the pinhole to the light intensity incident on the back side of the device, and exhibits saturation. We also analyzed the deconvolution orders for this device, using a nonlinear transform method. Computer simulation of image deconvolution by the NOLMEMS device is also presented.