As the key apparatus, the All optical Wavelength Converter (AOWC) will play an important role in future optical communication and optical signal processing system. In this paper, switching characteristics of wavelength converter based on saturable absorber in semiconductor lasers will be researched. This kind of conversion mechanism possesses some advantage, such as simple structure, low cost, high stability and so on. This paper is organized as follows: Firstly, utilizing rate equations, a new theoretical model on wavelength conversion based on saturable absorber is put forward. Nextly, the frequency modulation response of wavelength conversion will be discussed under the small-signal analysis based on the theoretical model. Lastly, Numerical value solution results will be given out when external signal light injects in saturable absorber region of semiconductor lasers. The characteristics of wavelength conversion are simulated in different optical parameters including the injection current, the input signal optical power and bit rate. Those results are useful to realization and the optimal design of the wavelength converter based on saturable absorber.