Wavelength Division Multiplexing (WDM) is the most viable technique for utilizing the enormous amounts of bandwidth inherently available in optical fibers. However, the bandwidth offered by a single wavelength in WDM networks is on the order of tens of Gigabits per second, while most of the applications' bandwidth requirements are still subwavelength. Therefore, cost-effective design and provisioning of WDM networks require that traffic from different sessions share bandwidth of a single wavelength by employing electronic multiplexing at higher layers. This is known as traffic grooming. Optical networks supporting traffic grooming are usually designed in a way such that the cost of the higher layer equipment used to support a given traffic matrix is reduced. In this thesis, we propose a number of optimal and heuristic solutions for the design and provisioning of optical networks for traffic grooming with an objective of network cost reduction. In doing so, we address several practical issues. Specifically, we address the design and provisioning of WDM networks on unidirectional and bidirectional rings for arbitrary unicast traffic grooming, and on mesh topologies for arbitrary multipoint traffic grooming. In multipoint traffic grooming, we address both multicast and many-to-one traffic grooming problems. We provide a unified frame work for optimal and approximate network dimensioning and channel provisioning for the generic multicast traffic grooming problem, as well as some variants of the problem. For many-to-one traffic grooming we propose optimal as well as heuristic solutions. Optimal formulations which are inherently non-linear are mapped to an optimal linear formulation. In the heuristic solutions, we employ different problem specific search strategies to explore the solution space. We provide a number of experimental results to show the efficacy of our proposed techniques for the traffic grooming problem in WDM networks.