Provided is a polarization multiplexing optical transmitting and receiving circuit that compensates for transmission side PDL so as to suppress a reduction in transmission power and makes a branching ratio of light from a light source variable between a transmission side and a receiving side according to a system to be used. The polarization multiplexing optical transmitting and receiving circuit includes an optical variable branching circuit that branches the light output from the light source, a light fixing symmetric branching circuit connected to one of outputs of the optical variable branching circuit and a light fixing asymmetric branching circuit connected to the other, optical receivers connected to two outputs of the light fixing symmetric branching circuit, respectively, optical transmitters connected to two outputs of the light fixing asymmetric branching circuit, a polarized wave rotator connected to one of the optical transmitters, and a polarized wave multiplexer that polarization-multiplexes the outputs of the optical transmitters.