An optical pick and place machine that includes a self-calibrating optical controller for error feedback based optical placement of optical components using active alignment is described. The optical controller can include a loopback mode to generate a baseline value of light generated by a light source and measured by a photodetector within the optical controller. The optical controller can further include an active alignment mode in which the light is coupled from the pick and place machine to the optical device on which the component is placed. The optical coupling of the placed component can be evaluated against the baseline value to ensure that the optical coupling is within specification (e.g., within a prespecified range).