Abstract: A wavelength-interchanging cross-connect for use as an optical switch within a wavelength-division multiplexing (WDM) communications network in which multiple optical carrier signals at different optical wavelengths are switched in an all-optical process according to their wavelength. The cross-connect of the invention further allows the optical wavelength of the signal being switched to be changed to another WDM wavelength. The cross-connect includes a series of multi-wavelength 2.times.2 spatial optical switches. One serial path is directly connected between the spatial switches. The other serial path leads through intermediate wavelength-interchanging modules that interchange the carrier wavelengths of at least one pair of signals. Preferably, the wavelength interchanging is performed by difference frequency generation relying on second-order non-linear susceptibilities and a pump signal providing parametric gain.