Security issues with optical access networks (OANs) are increasing as the number of users has dramatically grown. To address this problem, a full-system division multiplexing in both the time and wavelength domains has been utilized in a passive optical network second-generation (TWDM-NG-PON2) system. A secure approach to transfer data was presented by implementing the blowfish algorithm for image encryption and decryption in the OAN. Simulation results indicate effective realization of a bidirectional fiber link at 40 km with a splitting ratio of 1:256. The minimum accepted receiver sensitivity is −30.9dBm for uplink and −33.9dBm for downlink, and a symmetric high capacity of 160 Gbps rate has been obtained. The proposed algorithm in TWDM-PON offers high security with large bandwidth and an advanced long-haul network that provides effective resource usage and reinforced network authenticity.