The interaction between matter and squeezed light has mostly been treated within the approximation that the field correlation time is small. Methods for treating squeezed light with more general correlations currently involve explicitly modeling the systems producing the light. We develop a general purpose input-output theory for a particular form of narrowband squeezed light -- a squeezed wave-packet mode -- that only cares about the statistics of the squeezed field and the shape of the wave packet. This formalism allows us to derive the input-output relations and the master equation. We also consider detecting the scattered field using photon counting and homodyne measurements which necessitates the derivation of the stochastic master equation. The non Markovian nature of the field manifests itself in the master equation as a coupled hierarchy of equations. We illustrate these with consequences for the decay and resonance fluorescence of two-level atoms in the presence of such fields.
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