A novel multiplexing technique for fiber optic communications has been developed that supports multiple channels of optical energy inside an optical fiber by confining each individual channel to a unique spatial location. These channels can operate at exactly the same wavelength as well as at different wavelengths. The basic operating principle and experimental results for spatial domain multiplexed fiber optic communication systems is presented here. This technique adds a new dimension to currently available multiplexing schemes and has the potential to increase the bandwidth of existing and futuristic optical fiber systems by multiple folds.