In disclosed optical alignment method and apparatus thereof, external reflection entering laser diode by feedback from transmission line of low cost bidirectional optical transceiver module without optical isolator for subscribers is reduced so as to reduce RIN considering high optical coupling efficiency. The external reflection is minimized using property that output current increases in proportion to external reflection during optical alignment. For optimal optical alignment, external reflection and RIN are previously measured according to optical alignment position between subassembly and optical fiber. Optimal position is determined by both light output and RIN, and predetermined ratio of the mPD output current of minimum RIN position to that of maximum light output power position.