The optical conductance of monolayer graphene is defined solely by the fine structure constant, alpha = e(2)/(h) over bar hc (where e is the electron charge, (h) over bar is Dirac's constant and c is the speed of light). The absorbance has been predicted to be independent of frequency. In principle, the interband optical absorbtion in zero-gap graphene could be saturated readily under strong excitation due to Pauli blocking. Here, use of atomic layer graphene as saturable absorber in a mode-locked fiber laser for the generation of ultrashort soliton pulses (756 fs) at the telecommunication band is demonstrated. The modulation depth can be tuned in a wide range from 66.5% to 6.2% by varying the graphene thickness. These results suggest that ultrathin graphene films are potentially useful as optical elements in fiber lasers. Graphene as a laser mode locker can have many merits such as lower saturation intensity, ultrafast recovery time, tunable modulation depth, and wideband tunability.