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We investigate the assessment of packet loss and system dimensioning of feedback (FB) type wavelength division multiplexing (WDM) optical routers under self-similar IP traffic. We first study the packet loss performance for two types of WDM optical routers with asynchronous and variable packet length traffic. Based on the simulation results, we prove that a 16×16 FB type WDM optical IP router employing more than 4 recirculated ports without using a void filling algorithm can provide better performance. We then present the system dimensioning issues for FB type WDM optical routers, by showing that the performance of FB type routers is a function of the number of recirculated ports (recirculated wavelengths), buffer depth, recirculation limits and traffic characteristics. Hence, in order to be effective, the FB type routers must be dimensioned with an appropriate number of recirculated ports, recirculation limits and optimal delay line units under relevant traffic characteristics to achieve high switching performance.