A method and apparatus for active voltage regulation in optical modules utilize a voltage regulator to change the supply voltage provided to laser diode driver and receiver electronics to optimize module performance over temperature. The ambient temperature of the module is monitored. The outputs of the voltage regulator are controlled to provide voltages that are optimized with respect to temperature for the integrated circuits in the optical module. This control is implemented via a temperature sensitive feedback or a control input from a microcontroller with a temperature monitor input. The supply voltage is optimized to minimize the voltage required to achieve acceptable performance at a given temperature. Minimizing the supply voltage lengthens the lifetime of the integrated circuit and the optical module. The voltage regulator provides higher than standard supply voltages to a laser diode driver to compensate for higher laser voltage at low temperatures.