An optical wavelength-division multiplexing (“WDM”) device utilizing a mechanism of folded optical-path includes multiple collimators, optical filters, prism, and glass plate. The collimators are capable of collimating optical lights for facilitating free-space optical communication. The optical filters optically coupled with the collimators provide filtering functions to separate optical wavelengths in accordance with the configurations or characteristics of optical filters. The prism having an interface surface and two side surfaces is configured to direct or redirect optical beams based on the angle of incidence (“AOI”) of each optical beam received. The glass plate, in one embodiment, physically configured to be situated in parallel with the collimators is capable of providing free-space optical paths for facilitating separation of wavelengths.