Single-mode and low-loss optical fibers maintaining a state of polarization over a long length are necessary for coherent optical communication and fiber-optic sensing systems.1 Stress-induced birefringence fibers as reported so far show the high losses.2 Polarization mode dispersion (PMD) of these fibers is measured to be of the order of 50300 psec/km, which causes degradation of the receiver sensitivity in coherent optical communication systems. This paper presents polarization-maintaining and absorption-reducing (PANDA) fibers, which provide large modal birefringence and low- loss properties. Furthermore, the structure of PANDA fibers with zero PMD is proposed.