A polarization dispersion compensation apparatus includes a polarization controller, a polarization beam splitter, an optical delay circuit, and a polarization beam combiner. The polarization controller controls polarization of an optical signal so that the polarization axis of the input optical signal substantially coincides with the optical axis of an optical transmission line, and the polarization beam splitter section splits the optical signal into two polarized components perpendicular to each other. The optical delay circuit section causes a difference in delay between the two polarized components, and the polarization beam combiner section combines the two polarized components output from the optical delay circuit section. Each of the polarization beam splitter section and the polarization beam combiner section includes a symmetric Mach-Zehnder interferometer having optical transmission lines in two arms, each arm including a temperature control and a birefringence portion for compensating polarization dispersion between the two polarized components.