In accordance with the invention, an optical fiber transmission system is provided with multiple order PMD compensation to provide enhanced compensation at high bit rates and across a range of frequencies. Specifically, PMD is compensated by a concatenated series of components, each component configured to compensate for the effects of a successively higher order term of a PMD Taylor series approximation. Advantageously, each component comprises a polarization controller and a differential dispersion element of specified order. In an exemplary embodiment, the first order differential dispersion element can be a standard differential group delay (DGD) element. The element of second order can be a differential group-velocity dispersion element, and the third order element can be a differential dispersion slope element. These differential dispersion elements of various orders can be fixed or tunable elements in different embodiments.