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Future bandwidth demand in optical communication and signal processing systems will soon exceed 100 Gb s− 1 as is commonly forecasted from a throughput experience curve for communication systems. However, such systems cannot be realized without introducing ultrafast, all-optical devices, since existing optoelectronic and electronic devices and integrated circuits would not be able to function at a bit rate exceeding 100 Gb s− 1, because of the speed limit intrinsic to conventional semiconductor materials and devices. All-optical devices based on completely new principles, not being restricted by properties of existing materials and device principles, must be developed for the realization of ultrafast communication and signal processing systems. This paper reviews requirements of ultrafast all-optical devices and recent progress in ultrafast light sources and all-optical switches based on either novel device …