This paper presents an efficient simulation method for the design of the op
tical transport layer of large-scale multiwavelength optical networks. Acco
rding to this method, computations are performed in two complementary steps
. During the first step, the powers of optical signals, amplified spontaneo
us emission (ASE) noise, and linear optical crosstalk are calculated at all
points in the network. During the second step, the distortion and the over
all performance of selected optical paths in the network are calculated. Ea
ch simulation step requires a different computer representation of optical
signals and network components. A large part of this paper is devoted to th
e description of the wavelength-domain representation used during the first
simulation step, In wavelength domain, optical signals are represented hy
their carrier wavelength and average power, exclusively. In addition, the n
etwork components are fully characterized by their loss or gain as a functi
on of wavelength. The phase-transfer functions of the network components ar
e discarded. These simplifications result in a dramatic increase in executi
on speed. During the second simulation step, optical signals are represente
d by their temporal waveforms. Linear optical network segments are replaced
by an equivalent channel. The link between the two simulation steps is exp
lained in detail. The remainder of the paper is devoted to the implementati
on of a network simulation tool based on the above method in the context of
the multiwavelength optical networking (MONET) project. To illustrate the
capabilities of the MONET simulator, a mesh of 4 x 4 wavelength-selective c
ross connects (WSXC's) and wavelength add-drop multiplexers (WADM's) is stu
died and the crosstalk performance is determined.