Systems and methods for modifying, switching, rearranging or otherwise controlling the individual wavelength components of DWDM optical signals are described, which employ compact refolding and reshaping of these dimensionally patterned beams within a confined volume. The wavelength components of the beam are diffractively dispersed with high diffraction efficiency, and then reversely converged to beam waists incident on different ones of an array of control elements such as liquid crystal cells, MEMs and other spatial light modulators, or fixed distributed patterns. With reflective control elements the wavelength components may be reversely refolded along reciprocal paths with rediffraction, to form a reconstituted and revised DWDM output signal. If the control elements transmit at least one of the wavelength components, a separate, adjacent three dimensional beam refolding path, with rediffraction, is used to feed recombined signals to a separate output. High diffraction efficiency and minimal optical aberrations are achieved by employing a diffraction grating and opposed Mangin mirror system as the principal elements for beam refolding. The approach is useful in systems servicing narrow channel separations, and in a wide variety of applications including channel equalization, interleaving, channel blocking, and channel grouping.