Time- and wavelength-division multiplexed passive optical network (TWDM-PON) has been selected by full service access networks as a primary solution for next generation PON stage 2 in April 2012. In this letter, we propose and demonstrate a symmetric 40-Gb/s TWDM-PON with 39-dB power budget. A reflective semiconductor optical amplifier is used in optical network unit as a pre-amplifier to enhance the sensitivity of downstream signals. For the upstream direction, a thermally-tuned directly modulated laser with 10-Gb/s modulation rate is used as upstream colorless source, and a chirp management filter is employed in optical line terminal to mitigate chromatic dispersion therefore enabling fiber transmission. Symmetric 40-Gb/s TWDM-PON is experimentally demonstrated with a power budget of 39 dB, which could support 25-km fiber transmission and 1:1000 splitting ratio.