Decimation is a common process in digital signal processing that involves reducing the sampling rate of an oversampled signal by linearly combining consecutive samples. Among other applications, this process represents a simple means to mitigate noise content in the digital signal. In this work, a novel optical signal processing concept inspired by these operations is proposed, which is called Parametric‐assisted Oversampling and Decimation (POD). By using a simple all‐fiber setup, the POD processor first realizes an ultra‐fast parametric oversampling of the incoming temporal signal (at >100 Gigasamples per second), a process that is followed by a decimation that reduces the sampling rate by any user‐defined factor in a lossless manner. In this way, the POD delivers an amplified sampled copy of the optical signal, where the peak‐to‐peak gain results from the combination of parametric amplification and a “passive” amplification equal to the decimation factor. In this report, joint parametric and passive amplification by a factor ≈50 on GHz‐bandwidth signals is demonstrated. Furthermore, it is shown that the decimation process can effectively mitigate effects of narrowband noise, outperforming traditional optical and digital filtering techniques. By experimentally achieving ultra‐high decimation factors (>750), narrowband (MHz‐bandwidth) optical waveformsthat are lost in a much stronger noise background are recovered.