Embodiments of the invention include an optical fiber device such as a modulator, variable attenuator or tunable filter including an optical fiber having a core region, a cladding layer around the core region, and a controllable active material disposed in, e.g., capillaries or rings formed the cladding layer. The active materials include, e.g., electro-optic material, magneto-optic material, photorefractive material, thermo-optic material and/or materials such as laser dyes that provide tunable gain or loss. The application of, e.g., temperature, light or an electric or magnetic field varies optical properties of the active material, which, in turn, varies or affects the propagation properties of optical signals in the device. The optical device includes a tapered region that causes the core mode to spread into the cladding region and, simultaneously, allows the active material to be relatively close to the propagated modes, thus allowing interaction between the active material and the propagating modes.