In this paper, we propose a hybrid time‐division multiplexing and dense wavelength‐division multiplexing scheme to implement a cost‐effective and scalable long‐reach optical access network (LR‐OAN). Our main objectives are to increase fiber plant utilization, handle upstream and downstream flow through the same input/output port, extend the reach, and increase the splitting ratio. To this end, we propose the use of an arrayed waveguide grating (AWG) and an erbium‐doped fiber amplifier (EDFA) in one configuration. AWG is employed to achieve the first and second objectives, while EDFA is used to achieve the third and fourth objectives. The performance of the proposed LR‐OAN is verified using the Optisystem and Matlab software packages under bit error rate constraints and two different approaches (multifiber and single‐fiber). Although the single‐fiber approach offers a more cost‐effective solution because service is provided to each zone via a common fiber, it imposes additional losses, which leads to a reduction in the length of the feeder fiber from 20 km to 10 km.