A hybrid integrated optical module composed of a silica-based planar lightwave circuit (PLC), a laser diode with an integrated monitor-photodiode, and a pin-photodiode is fabricated for use in high-performance, compact and cost-effective fiber optic subscriber systems. Its applicability to a wavelength-division-multiplex (WDM) system with a 1.3-µm bi-directional signal and a 1.5-µm one-way signal is demonstrated. The PLC was fabricated by a combination of flame hydrolysis deposition (FHD) and reactive ion etching (RIE), and it simultaneously achieved 1.3-µm/1.5-µm multi/demultiplexing and 1.3-µm Y-branching functions. The optical module exhibited insertion losses of 4.1dB at 1.31µm (including a Y-branch circuit loss of 3dB) and 0.5dB at 1.53µm. An optical output power of more than -4dBm was obtained from the optical module and the crosstalk was sufficiently low at less than -20dB between wavelengths of 1.3µm and 1.5µm. Temperature cycle tests on the optical module showed reliable and stable operation with an optical power fluctuation of less than 0.3dB for 500 cycles.