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This paper discusses nonlinear optical signal processing employed in optical packet switching systems. Nonlinear optical signal processing provides optical label (header) recognition, optical switching, wavelength conversion, and time buffering with typically higher capacity, lower latency, and lower power consumption than electronic counterparts. In order to provide diverse signal processing functions, large-scale integration of nonlinear optical signal processing devices is essential. We discuss possible future directions in optical packet switching involving nonlinear optical signal processing of optical packets with advanced data and label modulation formats.