A bidirectional optical transceiver integrated with a novel transmission envelope detector for controlling the transmitting direction automatically is proposed. The transmission envelope detector detects the present of received signals to generate the directional controlling signals. Implemented in a 0.18 µm CMOS technology, the bidirectional optical transceiver occupies an area of 1.08 mm 2 and dissipates 42 mW and 49 mW in Tx and Rx modes, respectively. It achieves a 3-dB bandwidth of 4.4 GHz and 4 GHz in transmitter (Tx) and receiver (Rx) modes, while the disabled outputs for the Tx or Rx modes are isolated with 41 dB and 68 dB, respectively, from the enabled outputs.