Abskuct-The impact of crosstalk in an arrayed-waveguide -Y x -Y wavelength multiplexer is investigated precisely in relation to its application to wavelength-routing N x N all optical networks. In such systems multiple crosstalk light which has the same wavelength as the signal results in signal-crosstalk beat noise. We confirm that the noise is Gaussian and obtain the relation between crosstalk and power penalty. It is shown that the crosstalk must be less than -38 dB for a 16 x 16 system to keep the power penalty below 1 dB at a bit error rate of

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