A targeting and tracking apparatus and method for optical transceivers is disclosed. The tracking function is performed internally by way of translating an internal optical fiber in the focal plane of the transceiver telescope using miniature motorized translation systems and/or micro-electro-mechanical systems (MEMS). The optical design of the transceiver provides a wide field of view and a pointing and tracking field of regard that is directly proportional to the translation of the optical fiber in the focal plane of the telescope. The apparatus and method can eliminate the need for external gimballing systems and scanning mirrors, and replace the gimballed optical beam steering function with motorized translation systems and/or MEMS that consumes very little power.