Abstract: A relatively simple, low cost apparatus detects the presence and location of faults in an optical transmission system. It is particularly applicable to underwater optical transmission systems. The optical transmission system contains at least one optical fiber pair extending between two terminals. Optical amplifier based repeaters are located at predetermined positions along fibers. Each repeater has a simple high-loss optical loopback circuit which is used to provide fault identification and location. The loopback circuit couples a portion of the optical signal travelling from a transmitting station through one of the fibers, attenuates that portion of the optical signal, and adds the attenuated signal to the optical signal in the other fiber for return to the transmitting station. Fault location is accomplished by launching a supervisory signal into the fiber from one of the terminals.