We demonstrate that the correlation-based optical time domain reflectometer (OTDR) can be used for the in-service monitoring of the 64-split time-division-multiplexed passive optical network (TDM PON). To achieve this objective, we superimpose a pseudo noise (PN) sequence having a modulation depth of similar to 40% to the downstream signal and utilize it for the correlation detection. However, the use of such a large PN sequence can seriously deteriorate the performance of the downstream receiver. Thus, we apply 8B/10B encoding to the downstream signal, and then filter out the PN sequence at the downstream receiver by using a high-pass filter. As a result, the power penalty caused by the use of a large PN sequence is reduced to an acceptable level (<3 dB), while the dynamic range of this correlation-based OTDR is increased to similar to 30 dB. We then evaluate the performance of the proposed OTDR in the fiber link similar to the optical distribution network of the 64-split TDM PON. The results show that this OTDR can detect both the reflective and non-reflective events occurred in the feeder fiber as well as the reflective events in the drop fibers even in the 64-split TDM PON. (C) 2012 Optical Society of America