Abstract: Method and apparatus are provided for polarization demultiplexing for a Polarization Division Multiplexed (PDM) signal stream in the optical domain. The optical PDM signal stream includes a first channel representing a first data stream and a second channel representing a second data stream, a time delay between the first channel and the second channel. A Polarization Beam Splitter (PBS) demultiplexes an optical PDM signal into the first channel and the second channel. An associated processing block obtains one of the channels and provides a Polarization Controller with for a control signal corresponding to the power level of the low frequency portion of the RF spectrum of the channel obtained. Based on the control signal, the Polarization Controller adjusts a state of polarization of the optical PDM signal stream that is provided to the PBS for demultiplexing.