We proposed all-optical signal processing devices based on a two-mode injection locking scheme. The operating principle is based on an all-optical inverter using transverse mode switching of an injection-locked vertical-cavity surface-emitting laser (VCSEL). Injection-locking with CW assist light enables us to increase the operating speed and to stabilize the fixed polarization state. Also, it provides a nonlinear transfer function in input–output characteristics, which will be useful for signal re-shaping, re-amplification. The polarization state of an output signal can be strictly controlled by two-mode optical injection scheme. Thus, the polarization state of an inverted signal can be fixed for randomly polarized input light. In addition, all-optical 3R regeneration and NRZ–RZ format conversion can be achieved with an electrically driven clock signal. The proposed scheme gives rise to novel functions such as all-optical 3R regeneration with an optical re-polarization function, which is called 4R regeneration. In addition, NRZ–RZ format conversion can be supported. We carried out the modeling based on a multi-transverse-mode rate equation analysis, which includes two orthogonal polarization modes, exhibiting a potential for high-speed 4R regeneration and format conversion at 10 Gbps.