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In an optical fiber communication system, polarization-dependent loss (PDL), referring to polarization-dependent optical power attenuation, might be a main system performance limiting factor. PDL causes a difference in signal power and imbalance of optical signal-to-noise ratio (OSNR) between the two polarization branches. The OSNR asymmetry will eventually deteriorate the overall system performance. At present, most of the equalization methods of PDL in the literature can only accomplish power imbalance equalization and are, thus, not the true equalization of PDL. Besides, in some extreme environments, like lightning strikes, Kerr and Faraday effects would generate ultra-fast rotation of state of polarization (RSOP), as fast as mega-radian per second. The fast RSOP in combination with PDL makes the eigenmodes of the PDL randomly time-varying, which will put a heavy burden on the equalization module of the receiver. Faced with this dilemma, in this paper, we propose a scheme for the true equalization of PDL in the presence of fast RSOP through an approach based on the combination of the polarization-time code and Kalman filter. The proposed approach is proved to be very effective and provides significant performance. With a 1.2 dB OSNR penalty, it can jointly equalize large PDL (7 dB) and fast RSOP (up to 1 Mrad/s).

True Equalization of Polarization-Dependent Loss in Presence of Fast Rotation of SOP