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This paper presents a novel hybrid distributed fault-management protocol for combating single-fiber failures in mesh-based DWDM optical networks. The proposed hybrid approach combines Link State Protocol to disseminate and update information only about the physical connectivity of the network and a distributed local information-based signaling algorithm for connection management. The purpose of using a hybrid approach is two advantages: (1) reducing the signaling overhead associated with the global information-based link state protocol by using a distributed approach where only local information is maintained at each node; and (2) eases the implementation of the routing protocol where physical constraints, such as link/node diversity, are imposed. The performance of the proposed hybrid approach is evaluated via comparing the dedicated-path protection and the shared-path protection schemes in terms of blocking probability, restoration time under failure assumption, and data loss incurred during the recovery phase.