An adaptive dispersion compensation system that also achieves optical amplification by inducing Raman amplification effects in dispersion compensating fiber. This amplification/chromatic dispersion compensation architecture may be applied, e.g., at the end of an all-optical link, or an intermediate points along the link. By varying the length of dispersion compensating fiber used and the pump power, one may accommodate a wide range of dispersion compensation requirements as determined in the field. This scheme also provides all of the advantages typically provided by the use of Raman amplification.