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In this paper we have proposed a novel Optical Code Division Multiple Access (OCDMA) prime code, hereby referred to as the “Uniform Cross-Correlation Modified Prime Code (UC-MPC)”. A novel set of formulas is derived for construction of the UC-MPC. Also the correlation properties of the UC-MPC are analyzed and compared with other existing prime code families. Based on this new spreading code, we have analyzed and compared the performances of the following PPM-OCDMA systems (i) without interference cancellation (ii) with interference cancellation and Manchester codes and (iii) with cancellation only. We have found that the proposed UC-MPC has better correlation properties, enhances the bit error rate (BER) and improves the security, as compared with the other existing prime code families.