Semiconductor mode-locked lasers are evaluated as pulse sources for high bit rate data transmission. This chapter describes the requirements of OTDM sources for high bit rate data transmission, compares various OTDM source technologies, describes three semiconductor mode-locked laser cavity designs, explains the impact of timing jitter and amplitude noise on OTDM performance, illustrates how to characterize noise of OTDM sources using rf and optical techniques, shows how to interpret the noise measurements, and finally discusses semiconductor mode-locked laser cavity optimizations that can achieve low noise performance.A critical part of the design of a communication system is the choice of the transmitter or source laser. High bit rate optical time-division multiplexed (OTDM) systems in particular demand reliable short pulse generation at high repetition rates and turn-key operation. Semiconductor mode-locked lasers are becoming increasingly attractive and viable for such applications.Semiconductor mode-locked lasers can be compact sources of picosecond, highrepetition rate pulses of light at the popular telecommunication wavelength of 1.5 μm [1,2]. Recent advances in semiconductor processing and cavity design have led to the advent of ultra-stable [3] and ultralow-noise [4,5] performance. With proper temperature control of the semiconductor device and a clean electric supply for the bias and injection current, the diode can remain mode-locked for days. Single-channel, singlepolarization transmission rates up to 160 Gb/s [6] have been successfully demonstrated using mode-locked semiconductor lasers, and detailed characterization of their noise