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The model of two-dimensional (2-D) guided-wave photonic band-gap structures based on the Bloch-Floquet theory is proposed for the first time for both infinite and finite length devices. The efficient computation of dispersion curves and field distribution is carried out in very short computer time. Both guided and radiated modes can be easily identified to give a physical insight, even in defective structures. The accuracy of the model has been tested through the design of a very compact narrow-band 2-D guided-wave photonic band-gap filter at 1.55 μm. The filter has a channel isolation of 22 dB, a large number of channel (>80) with a channel spacing of 50 GHz, and a very short length (24 μm).