In this paper we present the first time-wavelength assignment algorithm for WDM star based local and metropolitan area networks. The algorithm incorporates the unique aspects of WDM communication such as a number of tunable transmitters and receivers at each concentrator, the tuning time, and a limited number of wavelengths. The transmission duration is composed of two elements: l) the packet transmission time and 2) the overhead incurred due to the tunability of the system's transmitters and receivers. For a given traffic matrix, the introduced algorithm obtains a TDM/WDM schedule with minimal packet transmission duration, while minimizing the tuning time.