An all-optical modulation format converter for converting optical data signals modulated in an on-off-keying (OOK) format to a phase-shift-keying (PSK) format. The OOK-to-PSK converter can be coupled to a delay-line interferometer to provide an all-optical wavelength converter for differential PSK (DPSK). The OOK-to-PSK converter can also be used in all-optical implementations of various functions, including, for example, exclusive-OR (XOR) logic, shift registers, and pseudo-random binary sequence (PRBS) generators.