A free-space optical communication system has a conversion assembly, a fiber array, and a wavelength selective switch (WSS) assembly. The conversion assembly converts circular polarization states of incoming optical signals to linear polarization states and converts linear polarization states to circular polarization states for outgoing optical signals. The fiber array has polarization-maintaining (PM) optical fibers arranged in optical communication between the conversion assembly and the WSS assembly to preserve the linear polarization states of the optical signals. The WSS assembly has free-space optics, such as dispersion element and beam-steering element, with optical axes arranged relative to the PM optical fibers. The WSS assembly selectively switches WDM channels of the optical signals relative to the PM optical fibers. Fast and slow axes of the PM optical fibers are aligned to the optical axes of the free-space optics.