The present invention discloses a thermally stable rare-earth doped fiber source comprising an active medium such as Erbium or Neodymium. The thermal stability of the mean wavelength of such a source is determined by three contributions as expressed by the following differential equation: ##EQU1## The first term is the intrinsic temperature dependence of the active medium, the second term is the pump power dependence and the third term is a contribution that arises from the dependence of the emission wavelength on the pump wavelength. The method of the present invention minimizes the temperature dependence on the mean wavelength by using the above equation and optimizing the values of the pump power and the pump wavelength so that the three contributions in the governing equation cancel each other.