An apparatus for equalizing polarization mode dispersion in an optical signal traveling through an optical fiber. A polarization mode separator separates the optical signal into a first polarized signal and a second differently polarized signal traveling along respective first and second paths. A first variable delay generator located along the first path is adapted to selectively provide a first propagation delay to the first polarized signal. The first variable delay generator includes at least two rotating micro-mirrors and one or more fixed mirrors constructed on a surface of a substrate. The fixed mirrors include a plurality of optical paths of differing lengths adapted to optically couple with the two rotating micro-mirrors. A controller is coupled to the first variable delay generator. The controller is adapted to monitor the polarization mode dispersion in the optical signal and to position the rotating micro-mirrors to direct the first polarized signal along one of the plurality of optical paths. A beam combiner is coupled to the first and second optical paths after the first variable delay generator. The beam combiner combines the first and second signals to form an optical output signal substantially compensated for polarization mode dispersion.