A structure of optical grating slab waveguide including a light waveguiding layer with linear refractive index disposed on another waveguiding layer having a nonlinear refractive index. The refractive index of nonlinear waveguiding material is a function of intensity of optical power incident therein. The structure of this invention provides an optical waveguide having improved optically coupling coefficient. A optical grating structures formed with a slab waveguide of this invention may be used as a wavelength selective coupling device of bidirectional optical coupler that is particularly useful as demultiplexer or multiplexer.