An optical device is presented which is useful for optical signal transmission and switching systems by multiplexing and demultiplexing optical signals in looped optical paths, consisting of a plurality of individual loop-back optical paths. The device is essentially a multi/demultiplexer having an arrayed waveguide grating disposed between a plurality of input sections and output sections which are joined by the plurality of individual loop-back optical paths. Because the modulated signals are looped back into the same optical paths using the same devices, problems of mismatching performance introduced by using different optical devices are avoided. The device processes individual optical signals of different wavelengths, minimizes splitting losses, and reduces noise components by producing narrow bandpass signals of high signal to noise ratio. Optical signal splitting and insertion, delay line memory and delay equalization circuits can all be handled by the same circuit configuration. The device is simple in construction, reliable in performance and economical in production.