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Wavelength conversion with a high efficiency and wide conversion range can easily be realized by applying an assist beam of short wavelength to a dual-pumped semiconductor optical amplifier (SOA). Experimental results reveal that an assist beam can improve the conversion efficiency and signal-to-background ratio by up to 8.5 and 4.1 dB, respectively, when the SOA is biased at the current that makes the SOA transparent to the assist beam. The efficiency can exceed -10 dB over an 80-nm wavelength conversion range using a 23-dB gain SOA. The assist beam increases the system power budget because it simultaneously improves the conversion efficiency and reduces the receiver power penalty. The power penalties for up-converting and down-converting 10-Gb/s signals to 25 nm of wavelength range are less than 0.5 and 2.5 dB, respectively.