We report on the operation and performance of a novel electrooptic polarization scrambler that is capable of generating any desired combination of optical phase and polarization modulation, The scrambler comprises a dual-drive Mach-Zehnder-type intensity modulator on lithium niobate and an external microoptic polarization splitter which combines the two complementary outputs of the integrated-optic intensity modulator in orthogonal polarization states, The modulation indexes of the sinusoidal phase and polarization modulation in the output light can be varied independently of each other via the amplitudes and phases of the two drive voltages to the Mach-Zehnder modulator, The scrambler has a 3-dB modulation bandwidth of 14 GHz and operates in the 1.5-1.6-mu m wavelength range with an overall fiber-to-fiber insertion loss of less than 5 dB, At 5 GHz modulation frequency and electric drive powers between 390-2030 mW, we demonstrate phase-chirped and chirp-free depolarization with a residual degree of polarization of less than 0.02 and continuously variable phase modulation to 2.3-rad peak phase deviation.