The invention provides a system and method for secure communication that involves encoding and transmitting an optical communications signal that is encoded based on a multi-dimensional encoding technique. This technique may include at least one or more of encoding a phase, a polarization, and a frequency of the signal. Light encoding is independent from its modulation with data. The data is modulated using any format; in the preferred embodiment the QPSK format is implemented. The encoded and modulated light is transmitted through free space or via a fiber optic network to a receiver, where the information is decoded. A coherent detection based on 90-degrees or 120-degrees optical hybrid is used to decode and recover the data from the received signal. Because the encoding of the transmitted light varies according to a specific pattern or sequence, one without knowledge of the transmission encoding sequence is prevented from decoding the transmitted information.