A free space optical tap and multi/demultiplexer unit includes at least one optical unit that can tap off an optical signal from and/or add an input optical signal to a received FSO signal. The optical unit propagates the resulting optical signal, via free space, to a next optical unit of the system. The optical unit can include a holographic grating to diffract a portion of the received FSO signal to an optical detector and/or diffract an input optical signal to form part of a free space optical output signal. In addition, the FSO signal can include component signals of different wavelengths, with each optical unit of the system being wavelength specific to a different one of the wavelengths of the FSO signal.