A theoretical approach to the interaction between polarized light and polarization devices, based on the vectorial and pure operatorial form of the Pauli algebra, is presented. In the first part of the paper we have established the vectorial Pauli-algebraic forms of the operators corresponding to various polarization devices and states of light polarization. In this second part we give the vectorial Pauli-algebraic treatment of the interaction between the canonical polarization devices and the various forms of light polarization. Unlike the standard (Jones and Mueller) approaches, this formalism does not appeal to any matrix representation of the involved operators. This approach establishes a bridge between the Hilbert space of the density operators of the polarization states and the Poincaré space of their geometric representations and gives a rigorous justification of the handling of the interactions between the polarization states and polarization systems on the Poincaré sphere and in the Poincaré ball. In such an approach, unlike the standard ones, the three relevant quantities that characterize the interaction – the gain, the Poincaré vector of the outgoing light and its degree of polarization – result straightforwardly, in block. A generalized form of Malus’ law, for any dichroic device and partially polarized light is also obtained this way.