Electron spin dynamics in Kapitza-Dirac scattering from a standing laser wave of high frequency and high intensity is studied. We develop a fully relativistic quantum theory of the electron motion based on the time-dependent Dirac equation. Distinct spin dynamics, with Rabi oscillations and complete spin-flip transitions, is demonstrated for Kapitza-Dirac scattering involving three photons in a parameter regime accessible to future high-power X-ray laser sources. The Rabi frequency and, thus, the diffraction pattern is shown to depend crucially on the spin degree of freedom.
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