The invention relates to the monitoring of polarization mode dispersion (PMD) using heterodyne detection for providing PMD compensation in optical networks, and an apparatus for monitoring PMD. In the present invention, a broadband PMD monitor is disclosed based on heterodyne detection with a tunable laser source which can be fed to a compensator such as an add/drop or other wavelength switch and polarization dependent attenuation means. A signal from a local oscillator is combined with an optical signal and the beat frequency amplitude and phase is analyzed for two orthogonal polarization states simultaneously to obtain a state of polarization. By averaging a plurality of polarization states within a channel, PMD can be estimated for compensation.