An optical data communication system is provided whereby two orthogonal polarization states of a light beam carrier correspond to digital states. In such a system, automatic polarization compensation is provided by applying a dither modulating voltage to a cell exhibiting the electro-optic effect. The cell controls the relative phase of electric field components of an input light beam enabling the dither frequency component of the difference of the instantaneous powers in the two polarization states to be coherently detected. A signal derived from the coherent detection process is fed back to the cell via an integrator to form polarization bias compensating servo loop ot Type 1
