We propose and experimentally demonstrate a polarization division multiplexing (PDM) link employing an integrated dual-polarization thin-film lithium niobate (TFLN) modulator and an on-chip automatic polarization demultiplexer. The tracking speed of an 80-Gb/s PDM link achieves a maximum of 600 rad/s with a bit error rate (BER) below 2.4 × 10−2. Furthermore, at a polarization scrambling rate (SR) of 100 rad/s, BERs maintain around 1.7 × 10−3 over a period of half an hour. This configuration takes advantage of the TFLN platform, which includes high-speed modulation, fast polarization control, and a compact footprint, effectively doubling capacity per wavelength using simple direct detection. The demonstration highlights the effectiveness of on-chip polarization multiplexing and demultiplexing, particularly in scenarios involving polarization fluctuations, offering promising prospects for applications in commercial short-reach data centers.