A temperature compensated optical fiber grating device comprises a longitudinally extending optical fiber grating having a length and a packaging assembly for the grating comprising a first longitudinally extending body of material having a first coefficient of thermal expansion (CTE) and second and third longitudinally extending bodies of material having CTE's lower than the first CTE. The three bodies are mechanically attached at alternate ends to form a composite structure having an effective negative CTE between two ends to which the grating is attached. The resulting grating device can be made in compact form having an overall length less than 30% more than the grating (and preferably less than 10%) and can reduce the temperature dependent wavelength change in the grating to less than 0.2 nm/100.degree. C. and preferably less than 0.05 nm/100.degree. C. In a preferred embodiment, the packaging bodies include a cylinder enclosing the grating.