We propose an N-channel power-compensated reconfigurable optical add/drop multiplexer (ROADM) based on using fiber Bragg gratings (FBGs). Both tunable FBGs and wavelength-fixed FBGs are used in this ROADM. By using the dual-pass amplification scheme with two pieces of erbium doped fibers, an 8.0 dB optical net gain has been achieved with a gain variation less than 0.5 dB for each add/drop/pass-through channel. System performance was studied for a four-WDM-channel 10 Gb/s100-km lightwave transmission trial network and bit error rate of 10-9 is observed for the 50 km added signal, 100 km pass-through signal and 50 km dropped signal at -18.3, -19.4 and -18.9 dBm received power, respectively. Only 1.1 dB of power penalty was observed compared to the back-to-back transmission.