A compact fiber packaging system for fiber lasers is provided that comprises a series of spools nested inside one another for efficient volume utilization. The spools comprise an inner spool nested inside at least one outer spool to form a module. Generally, the fiber lasers are wrapped around the inner spool, and then around successive outer spools as required to form the module. Furthermore, the modules may be stacked to form a fiber assembly. The compact fiber packaging system further comprises devices and methods for minimizing thermal gradients between fibers and for removing Waste heat from the system. Additionally, the available volume is further utilized by disposing equipment and materials for operation of the fibers inside a hollow center defined by the inner spool, between the nested spools, and adjacent the nested spools.