Abstract: The characteristics of all-optical wavelength converter based on SOA-XPM are investigated on PTDS (Photonic Transmission Design Suite) simulator. Through extensive numerical simulation,the effects of the operational parameters when using such kind of wavelength converters,such as the signal average power, probe average power and injection current on the performance indexes of the modulated probe signal such as Q value,extinction ratio and BER are emulated and analyzed thoroughly. And the performance of the wavelength converter is studied. Some results, which are useful to the optimal design of the wavelength converter based on SOA-XPM, are obtained.