Abstract: An optical interleaver. The interleaver is based upon the Mach Zender interferometer. At least one of the optical paths joining opposed couplers of the arrangement includes an optical image transfer element intermediate the ends of fibers associated with the couplers. In one embodiment, the optical image transfer element is a single imaging lens whereas, in another embodiment, the element consists of an aligned pair of collimating lenses. During fabrication, optical positioning stages support the optical image transfer element and fiber ends to permit ready adjustment of &Dgr;&THgr;, the optical path length difference between the arms of the interleaver, to assure predetermined optical channel spacing of an input DWDM signal.