Photonic crystals (PhCs) are structures periodic in the dielectric constant. They exhibit a photonic bandgap, i.e., a range of wavelengths for which light propagation is forbidden. Engineering of defects in the PhC lattice offers new ways to confine and guide light. PhCs have been manufactured using semiconductors and other material technologies. This thesis focuses on two-dimensional PhCs etched in InP-based materials. Only recently, such structures were identified as promising candidates for the realization of novel and advanced functions for optical communication applications.The primary focus was on fabrication and characterization of PhC structures in the InP/GaInAsP/InP material system. The demands on fabrication are very high: holes as small as 100-300 nm in diameter have to be etched at least as deep as 2 µm. Thus, different etch processes had to be explored and specifically developed for InP. We have implemented an etching process based on Ar/Cl 2 chemically assisted ion beam etching (CAIBE), that represents the state of the art PhC etching in InP.Different building blocks were manufactured using this process. A transmission loss of 10 dB/mm for a PhC waveguide, a reflection of 96.5% for a 4-row mirror and a record quality factor of 310 for a 1D cavity were achieved for this material system. With an etch depth of 4.5 µm, optical loss was found to be close to the intrinsic limit. PhC-based optical filters were demonstrated using (a) a Fabry-Pérot cavity inserted in a PhC waveguide and (b) a contra-directional coupler. Lag effect in CAIBE was utilized positively to realize high quality PhC taper sections. Using a PhC taper, a coupling efficiency of 70% was demonstrated from a standard ridge waveguide to a single line defect PhC waveguide.During the course of this work, InP membrane technology was developed and a Fabry-Pérot cavity with a quality factor of 3200 was demonstrated.Descriptors: photonic crystals, photonic bandgap materials, indium phosphide, dry etching, chemically assisted ion beam etching, reactive ion etching, electron beam lithography, photonic integrated circuits, optical waveguides, resonant cavities, optical filtering.