An optical fibre device based on the Raman effect comprises a first optical source to provide light at a first wavelength, and a holey optical fibre which receives the light from the first optical source such that optical gain or loss is provided at a second wavelength by the effect of Raman scattering within the fibre. For optical gain, the second wavelength is longer than the first wavelength, and the device can be operated as an amplifier, or as a laser if optical feedback is provided. For optical loss, the second wavelength is shorter than the first, and the device may be used as an optical modulator. The fibre may be fabricated from pure silica, although other undoped or doped materials may alternatively be used to tailor properties of the fibre such as gain spectrum, bandwidth, power handling capability and mode propagation.