This research explores the forefront of all-optical data processing systems through the utilization of carrier reservoir semiconductor optical amplifiers (CR-SOAs). Recent advancements have showcased the successful design and implementation of CR-SOA-based combinational systems, incorporating pivotal elements like half adders, half subtractors, digital-to-analog converters, latches, header recognition, and header processors. These breakthroughs signify a significant stride towards the realization of faster and more efficient optical logic systems. This study delves into the distinctive characteristics of CR-SOA-based Mach–Zehnder interferometer (MZI) functioning as an XOR gate, emphasizing their transformative potential in information processing. By integrating them into the architecture of an all-optical 4-bit parity generator and checker, the research underscores the practicality of CR-SOA technology in all-optical processing, offering unprecedented speeds and facilitating enhanced data processing capabilities at a remarkable speed of 120 Gb/s return-to-zero pulses. In evaluating the performance of the proposed scheme, the research employs the quality factor metric. This assessment not only yields quantitative insights into the efficacy of CR-SOA-based logic systems but also establishes a critical benchmark for their practical implementation. The study further explores the impact of key data signals and CR-SOA parameters on this metric. The outcomes demonstrate the ability of the CR-SOA-based MZI to cascade and form more intricate logic circuits, thereby highlighting the versatility and potential of this innovative approach in advancing the landscape of all-optical data processing.