We report on differentiating antiparallel ferroelectric domains in congruent Mg-doped LiNbO₃ (Mg:LNO) single crystals through a multiphoton photoluminescence technique. Sample illumination with femtosecond laser pulses at λ = 790 nm results in a broad multiphoton emission spectrum revealing a domain contrast of >3% between virgin and inverted domains. The contrast decreases via annealing and shows an exponential decay in the temperature range from 80 to 150 °C. Our findings give clear ground of a thermally induced structural change by surpassing a specific activation energy. Hence, the reported contrast dynamics must be closely connected to the thermal activation of charged defects, which dramatically alters the internal bias field of these defects. This explanation is also supported when using single crystal LNO of different Mg doping levels showing much lower multiphoton effects for a < 5% Mg concentration. Based on this effect of multiphoton luminescence, it becomes easy to microscopically monitor and quantify virgin and switched domains in LNO and other samples.