Abstract: A polarization mode separator separates the optical signal into a first polarized signal and a second differently polarized signal traveling along respective first and second paths. A first variable delay generator located along the first path is adapted to selectively provide a first propagation delay to the first polarized signal. The first variable delay generator includes at least two rotating micro-mirrors and one or more fixed mirrors constructed on a surface of a substrate. A controller is coupled to the first variable delay generator. The controller is adapted to monitor the polarization mode dispersion in the optical signal and to position the rotating micro-mirrors to direct the first polarized signal along one of the plurality of optical paths. A beam combiner combines the first and second signals to form an optical output signal substantially compensated for polarization mode dispersion.