An optical device comprises a dispersion element, a reflector, and an angle-to-offset (ATO) element. The angle-to-offset (ATO) element has optical power. The dispersion element is positioned in or near a focal plane of the ATO element and adapted to separate an input wavelength division multiplexed (WDM) light beam received from an input port of the optical device into two or more channel light beams. The reflector is positioned in or near a focal plane of the ATO element and arranged to receive the channel light beams from the dispersion element via the ATO element. The reflector is designed to reflect at least one of the channel light beams toward a respective output port of the optical device. With this arrangement, the dispersion element, reflector and ATO element cooperate to optically demultiplex the input WDM light beam. Additional optical elements arranged in the propagation path between the reflector and the output port(s) and/or between the input port and the dispersion element can be used to provide further optical signal processing functionality such as dynamic channel equalization, add drop, or wavelength switching.