A phase-compensation scheme is proposed and demonstrated to overcome the intrinsic tradeoff between the dispersion and the bandwidth of a volume grating. Its application to a volume grating-based dense wavelength-division multiplexing (DWDM) device is explored. A DWDM device is fabricated by using a 45°/82° configuration. To achieve phase compensation of the Bragg condition, a wavelength-dependent incident angle for a dispersion-enhanced holographic grating at 82° is generated through a prestaged volume hologram at 45°. The 3dB dispersion bandwidth is increased five times by using such a device configuration. A 21-channel DWDM device centered at 1555nm with 200GHz spacing is demonstrated within its 3dB bandwidth.