This article overviews the fundamental principles and attributes of the major all‐optical signal wavelength conversion (AOWC) methods commonly found in the literature over the last 25 years from the system perspective, which are oriented mainly for telecommunications applications. Two principal AOWC categories are analyzed: first, the optically controlled gates based on semiconductor optical amplifiers (SOAs) or electroabsorption modulators (EAMs) and second, the wave‐mixing AOWC schemes exploiting
χ
(3)
or
χ
(2)
material nonlinearities. In the case of the SOA‐based gates, the effects of cross gain modulation (XGM) and cross phase modulation (XPM) – with or without the employment of the offset filtering technique – are explained and a brief description of the regenerative schemes with SOA‐MZI (Mach‐Zehnder interferometer) switches is attempted. For the case of EAM‐based gates, both XAM and XPM effects are mentioned, utilized for efficient AOWC of intensity‐modulated signals. The wave‐mixing methods, covered in Section 2 of the article, start with the four wave mixing (FWM) effect on
χ
(3)
materials, describing methods to implement polarization insensitive operation. Special attention on the AOWC of advanced modulation formats is attempted by explaining methods on minimizing the phase noise induced on the conversion process. For AOWC on
χ
(2)
, materials the fundamental effects of difference frequency generation (DFG), sum frequency generation (SFG), and sum harmonic generation (SHG) are explained. In addition, particular focus is put on the attributes and the wavelength mapping of the cascaded cSFG/DFG and cSHG/DFG processes utilized in most AOWC‐schemes based on
χ
(2)
nonlinearities.