Dynamic Laser Stimulation (DLS) fault isolation techniques involve using an Automated Test Equipment (ATE) to run the device under certain test patterns together and a scanning laser beam to localize sites sensitive to laser stimulation. Such techniques are proven effective for localizing soft failures. In this paper, we demonstrate the feasibility of using such dynamic techniques for functional hard failures and design debug applications. We illustrate experimentally the significance of achieving sufficient signal to noise ratio (SNR) before such applications can be realized effectively, due to the large irregular noise that couples through as the functional pattern is run. We adopted a combination of hardware noise reduction and test program modification to overcome this challenge.