This paper reports a new design of optical time-division multiplexed (OTDM) systems that possess a functionality of simultaneous time demultiplexing and wavelength multicasting based on the cascaded four-wave mixing in a dispersion-flattened highly nonlinear photonic crystal fiber (DF-HNL-PCF). A module of OTDM demultiplexing and wavelength multicasting can be feasibly implemented by using a 3 dB optical coupler, a high-power erbium-doped fiber amplifier, a short-length DF-HNL-PCF, and a wavelength demultiplexer in the simple configuration. We also carry out an experiment on the proposed system to demonstrate the 100–10 Gbit s−1 OTDM demultiplexing with wavelength conversion simultaneously at 4 multicast wavelengths. It is shown that error-free wavelength multicasting is achieved on two wavelength channels with the minimum power penalty of 3.2 dB relative to the 10 Gbit s−1 back-to-back measurement, whereas the bit error rates of other two multicasting channels are measured to be about 10−6–10−5. Moreover, we propose the use of a proper error-correcting code to improve the multicasting performance of such an OTDM system, and our work reveals that the resulting system can theoretically support error-free multicasting of the OTDM-demultiplexed signal on four wavelength channels.