New results from the experiments ALEPH, DELPHI, L3, and OPAL on heavy quark production in \gamma \gamma collisions are presented. Inclusive charm and bottom production are investigated at LEP 2 energies. The total and differential cross sections for charm quarks are now measured by all four LEP collaborations, the total bottom by two. Charmonia are studied inclusively via the muonic decay of the J/\psi and separated for the resolved and diffractive processes. New results are available for exclusive production of the \eta _c meson. First searches for exclusive \eta _b production are presented.

PACS numbers: 13.65.+i