  We present near infrared broad band and polarimetric images of the compact
star forming cluster AFGL437 obtained with the NICMOS instrument aboard HST.
Our high resolution images reveal a well collimated bipolar reflection
nebulosity in the cluster and allow us to identify WK34 as the illuminating
source. The scattered light in the bipolar nebulosity centered on this source
is very highly polarized (up to 79%). Such high levels of polarization implies
a distribution of dust grains lacking large grains, contrary to the usual dust
models of dark clouds. We discuss the geometry of the dust distribution giving
rise to the bipolar reflection nebulosity and make mass estimates for the
underlying scattering material. We find that the most likely inclination of the
bipolar nebulosity, south lobe inclined towards Earth, is consistent with the
inclination of the large scale CO molecular outflow associated with the
cluster, strengthening the identification of WK34 as the source powering it.
