We have investigated the generation and transmission of optical millimeter (mm)‐wave signal based on optical phase modulator (PM) and fiber Bragg grating (FBG) filter. With an optimized modulation depth of PM and a higher carrier suppression ratio via a notch filter, the generated optical mm‐wave can be transmitted over a long‐distance without fading. We have also theoretically analyzed the impact of time shift on the eye closure of optical and electrical signal due to the fiber dispersion, which is well in accord with the experimental results. © 2007 Wiley Periodicals, Inc. Microwave Opt Technol Lett 49: 1787–1793, 2007; Published online in Wiley InterScience (www.interscience.wiley.com). DOI 10.1002/mop.22622