Optical and Quantum Electronics (2005) 37:965-994 © Springer 2005Applications of nonlinear effects in highly nonlinear photonic crystal fiber to optical communications Abstract. Unique dispersion characteristics and enhanced nonlinearity make the small-core photonic crystal fiber (PCF) an ideal candidate for nonlinear optical devices to telecommunication applications. Some technical reasons behind great research interest of highly nonlinear PCFs in optical communication components are reviewed. Nonlinear effects in highly nonlinear PCFs and their research progress are presented. Several typical applications including WDM sources, optical amplification, optical switching, wavelength conversion, optical regeneration and all-optical demultiplexing etc are introduced, together with state-of-the art performances. Some new possible applications and future prospects are discussed.Key words: nonlinear optics, optical fiber communication, nonlinear effects, optical fiber devices, photonic crystal fiber the core is hollow. This hollow core PCF has an operating principle that is significantly different from the solid core index guided fiber, which exploits the photonic band gap effect to guide light. PCFs can be designed to satisfy many specific applications, for example: to be single mode over an extremely broad wavelength range (Birks et al. 1997); to support larger or smaller mode field diameters (Knight et al. 1998;Broderick et al. 1999); to meet specific dispersion requirements ; to increase or decrease nonlinearity (Finazzi et al. 2003;; and to be highly birefringent resulting in improved polarization control (Hansen et al. 2001;Orgigosa-Blanch et al. 2004) . For applications of typical nonlinear characteristics of PCF to optical communications, the small solid core PCFs with high nonlinearity are preferred, and we will discuss them here. Due to the high index difference between silica core and air hole cladding, these PCFs allow much stronger mode confinement, and thereby much higher nonlinearities (Finazzi et al. 2003). In addition, the PCFs allow a more flexible tailoring of the dispersion properties , which are crucial for many applications of nonlinear effects. Nonlinear effects in the PCF are currently a research topic of great interest, and great progress has been made in the design and fabrication of PCFs. The noticeably increased nonlinear response in the PCF appears as a combination of very strong mode confinement and altered dispersion properties. Dispersion of such fibers is tailored by changing their core-cladding geometry, while a strong light-field confinement is due to the high refractive-index step between the core and the holey cladding, which would allow nonlinear optical interactions to be enhanced without increasing the energy of light. This makes it possible to compact and cost-effective telecommunication devices with short fibers and relatively low cost light sources, which are the principal drawbacks of previously demonstrated fiber-based nonlinear optical devices.Recently, PCFs with high nonli...