Abstract: The present invention is a method for compensating for stress induced in optical components used to couple light egressing from the housing of optical modules employing, for example, a distributed optical isolator. It has been discovered that this induced stress may be counteracted by transmitting a balancing or compensating force so as to produce a counter-stress in the optical component. Preferably, the method uses pairs of circumferential laser welds judiciously formed a distance form the holder housing the optical component so as s to control the magnitude and direction of the applied compensating force and, hence, the counter-stress transmitted to the optical component. During welding, the effects of the induced stress are monitored and based upon any changes therein, pairs of laser welds are formed around the circumferential surface of the housing of the optical component until the induced stress is substantially reduced or eliminated.