A control circuit for a laser diode includes a power controller and a wavelength controller. The power controller adjusts a bias current to the laser diode to change the power output of the laser diode. The power change can have a corresponding wavelength shift effect on the nominal operating wavelength of the laser diode. The wavelength controller compensates for the wavelength shift such that the laser diode maintains operation at the nominal wavelength. The circuit provides for electrical control of the laser output power without the need for a costly and bulky optical attenuator. The circuit also provides wavelength control to compensate for the relationship between laser diode operating temperature and wavelength.