In this paper, transmitter and receiver modules for free space optical interconnection are implemented and characterized. In the transmitter module, bias circuitry which inject current into the direct modulated laser diode is fabricated and in the receiver module, p-i-n diode is integrated with an MMIC amplifying stage. Laser diode has a direct-modulated bandwidth of 2 GHz at 1.4 Ith bias while p-i-n diode and amplifying stage has a bandwidth of 1.3 GHz and 1.5 GHz, repectively. Optical interconnection has a bandwidth of 1.3 GHz and linearly transmit modulated voltage signal up to 1.5 Vp-p. Measured loss of optical interconnection is 5dB which is composed of optoelectronic conversion loss of 15 dB, electrical impedance mismatch loss of 6.7 dB in transmitter module and gain of 18 dB in receiver module. Seperation between transmitter and receiver can be extended up to 50 cm by using a lens.