A wavelength selective optical fiber coupler having various applications in the field of optical communications is disclosed. The coupler is composed of dissimilar waveguides in close proximity. A light induced, permanent index of refraction grating is recorded in the coupler waist. The grating filters and transfers energy within a particular range of wavelengths from a first waveguide to a second waveguide. Transversely asymmetric gratings provide an efficient means of energy transfer. The coupler can be used to combine or multiplex a plurality of lasers operating at slightly different wavelengths into a single fiber. Other embodiments such as a dispersion compensator and gain flattening filter are disclosed.