An optical device with integrated Optical Time Domain Reflectometer (OTDR) functionality and method for the same is provided. The optical device includes a transmitter and an Optical Time Domain Reflectometer (OTDR) module, The transmitter is configured to generate an Optical Time Domain Reflectometer (OTDR)-modulated optical supervisory channel (OSC) signal by applying an OTDR modulation to an optical supervisory channel (OSC) signal using an OTDR signal and to transmit the OTDR-modulated OSC signal. The OTDR module is configured to generate the OTDR signal, to monitor a returned light signal, to determine transmitter noise compensation information, and to generate OTDR trace information using transmitter noise compensation information and the monitored returned light signal.