An Enhanced Reflective Optical Encoder (“EROE”) having an emitter module for transmitting emitted optical radiation to an encoded media and a detector module for receiving reflected optical radiation from the encoded media. The EROE may include a transmissive layer covering both the emitter module and the detector module, and an optical isolation element located within the transmissive layer and located between the emitter module and the detector module. The optical isolation element reduces undesired optical radiation transmitted from the emitter module to the detector module, where the undesired optical radiation is a portion of the emitted optical radiation.