A method and apparatus for compensating for temperature characteristics of a laser diode are disclosed. The laser diode may be used in a transmitter unit of a transceiver for optical signal transmission. The transceiver includes the laser diode and a monitor photodiode. In such a method, a modulation current is derived from an input voltage and arbitrary variables. Variations of overall modulation resistance values corresponding to an operation temperature range are evaluated by a relation between the modulation current and the overall modulation resistance, and the overall modulation resistance values are determined according to the variations. Also, variations of overall bias resistance values corresponding to the temperature range are evaluated by a current Impd of the photodiode, which is derived at specific optical power arbitrarily chosen in the temperature range. The overall bias resistance values are determined according to the variations.