Optical nonlinearity can be enhanced by the combination of highly nonlinear chalcogenide glass and photonic crystal waveguides (PCWs) providing strong optical confinement and slow-light effects. In a Ag-As(2)Se(3) chalcogenide PCW, the effective nonlinear parameter γeff reaches 6.3 × 10(4) W(-1)m(-1), which is 200 times larger than that in Si photonic wire waveguides. In this paper, we report the detailed design, fabrication process, and the linear and nonlinear characteristics of this waveguide at silica fiber communication wavelengths. We show that the waveguide exhibits negligible two-photon absorption, and also high-efficiency self-phase modulation and four-wave mixing, which are assisted by low-dispersion slow light.