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IP over all-optical multilayer networks is a promising solution to combine highspeed transmission using end-to-end lightpaths with the flexibility required to handle traffic increases and fluctuations at layer-2 (e.g., Ethernet) and/or layer-3 (e.g., IP). Fault management is a key issue for the successful deployment of these networks due to their high bit-rate and service-quality demands. To decrease complexity, the problems of locating the roots of multiple failures and initiating recovery actions in a network traditionally were approached from a single-layer perspective. This article analyzes the major challenges for fault detection, fault localization, and survivability in wavelength-routed, IP over all-optical multilayer networks and then, proposes a framework for efficient fault localization in this kind of network.