A 32-channel wavelength-division demultiplexer (WDDM) has been designed and tested. Intended for commercial use, the instrument is designed to be rugged, stable, and insensitive to temperature variations. Operating in the 1.54- to 1.57-mu m spectral range, the unit uses single-mode fiber input and multi-mode fiber output. The optics consists of a Littrow plane-grating spectrograph that uses the same lens for collimation and for focusing. In order to reduce the size of the device, the grating is used at a large diffraction angle. A coarse ruling is used in a high diffraction order, which results in a device that has a low polarization-dependent loss. The mean insertion loss for all channels was 3.1 dB, and the standard deviation of the insertion loss was 0.23 dB. The mean channel bandwidth was 0.26 dB.