Abstract: A system and method for improving performance of optical fiber networks. The combination of optical spectral inversion and dispersion management enhances performance in optical fiber transmission by controlling the effect of fiber nonlinearities. An optical fiber link, which includes a number of segments or spans, each with a length of fiber and an optical node (typically consisting of at least an amplifier), is provided with at least one spectral inverter, or an optical phase conjugator, connected in the link. Additionally, each span is provided with an amount of dispersion compensation, such as a length of appropriately chosen fiber, to compensate for dispersion as well as other distortion from dispersion's interplay with fiber nonlinear effects. Additional dispersion adjustment is provided in association with the spectral inverter.