A novel differential-phase-shift-keying (DPSK)/pulse-position-modulation (PPM) orthogonal modulation is proposed for optical labeling applications,with PPM data as the high-speed payload and DPSK signal as the optical label.The systematic setup for the proposed scheme and research on bit-error rate is presented.The results show that at the bit-error rate of 10-9,the power penalties for 70km fiber transmission are in the range of 1-3dB to DPSK label and 5-6dB to PPM payload in our simulation system.This is under the condition that the large extinction ratio of 18-19 dB is used for the intensity modulators of the PPM payload,with a well received DPSK label.Thus the feasibility of the proposed scheme for all optical transmission networks is clearly verified.