Quantum key distribution (QKD) provides a solution for communication of unconditional security. However, the quantum channel disturbance in the field severely increases the quantum bit-error rate, degrading the performance of a QKD system. Here we present a setup comprising silica planar light wave circuits (PLCs), which is robust against the channel polarization disturbance. Our PLCs are based on the asymmetric Mach–Zehnder interferometer (AMZI), integrated with a tunable power splitter and thermo-optic phase modulators. The polarization characteristics of the AMZI PLC are investigated by a novel pulse self-interfering method to determine the operation temperature of implementing polarization insensitivity. Over a 20 km fiber channel with 30 Hz polarization scrambling, our time-bin phase-encoding QKD setup is characterized with an interference fringe visibility of 98.72%. The extinction ratio for the phase states is kept between 18 and 21 dB for 6 h without active phase correction.