Techniques for automatic bandwidth optimization of an optical communication channel in an optical network are provided. In one embodiment, a method of automatically optimizing bandwidth includes receiving, at a first optical network element, a first signal transmission transmitted according to a first set of transmission parameters over an optical communication channel established between the first optical network element and a second optical network element. The method includes determining a first quality of signal parameter associated with the first signal transmission and determining whether the first quality of signal parameter is worse than a predetermined quality of signal value. Upon determining that the first quality of signal parameter is not worse than the predetermined value, the method further includes transmitting a second set of transmission parameters to the second optical network element to further optimize the bandwidth of the optical communication channel.