We demonstrated a novel optical switch with a reconfigurable dielectric liquid droplet. The device consists of a clear liquid droplet (glycerol) surrounded by a black liquid (dye-doped liquid crystal). In the voltage-off state, the incident light passing through the clear liquid droplet is absorbed by the black liquid, resulting in a dark state. In the voltage-on state, the dome of the clear liquid droplet is uplifted by the dielectric force to form a light pipe which in turn transmits the incident light. Upon removing the voltage, the droplet recovers to its original shape and the switch is closed. We also demonstrated a red color light switch with ~10:1 contrast ratio and ~300 ms response time. Devices based on such an operation mechanism will find attractive applications in light shutter, tunable iris, variable optical attenuators, and displays.