We have proposed a modified all-optical SPM-based 2R-regenerator using an imbalanced nonlinear optical loop mirror (I-NOLM). The benefits of using the I-NOLM are demonstrated. Simulation and experiment of 10-Gbit/s regeneration are also performed. Research results show that Q-factor and extinction-ratio of the degraded signal can be improved more with the modified regenerator compared to a conventional SPM-based 2R-regenerator.© (2010) COPYRIGHT SPIE--The International Society for Optical Engineering. Downloading of the abstract is permitted for personal use only.