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We develop a simulation tool for an all-optical gain-clamped erbium-doped fiber amplifier (GC-EDFA) based on an amplified spontaneous emission (ASE) reflector and thoroughly verify its validity by comparing simulation data with experimental ones. We carry out simulation work as changing conditions like reflection ratio and bandwidth of the ASE reflector, EDF length, and pump power. From this work, we have an exact understanding about the gain clamping principle that a reflected ASE acts like an intensity reservoir against input signal intensity variation. In general, as a reflected ASE power becomes higher, both a dynamic range and a noise figure (NF) increase; on the other hand, a clamped gain value decreases. The ASE reflector-based gain clamping scheme can be used for EDFAs with low NF characteristics at small input signal range in case a reflected ASE power is set at a level much lower than powers required for normal gain clamping function.