Innovations in optical communication are expected to transform the landscape of global communications, internet and datacenter networks. This dissertation investigates several important issues in optical communication such as fairness, throughput, blocking probability and differentiated quality of service (QoS). Novel algorithms and new approaches have been presented to improve the performance of optical circuit switching (OCS) and optical burst switching (OBS) for long haul, and datacenter networks. Extensive simulations tests have been conducted to evaluate the effectiveness of the proposed algorithms. These simulation tests were performed over a number of network topologies such as ring, mesh and U.S. Long-Haul, some high processing computing (HPC) topologies such as 2D and 6D mesh torus topologies and modern datacenter topologies such as FatTree and BCube. Two new schemes are proposed for long haul networks to improve throughput and hop count fairness in OBS networks. The idea is motivated by the observation that providing a slightly more priority to longer bursts over short bursts can significantly improve the throughput of the OBS networks without adversely affecting hop-count fairness. The results of extensive performance tests have shown that proposed schemes improve the throughput of optical OBS networks and enhance the hop-count fairness. Another contribution of this dissertation is the research work on developing routing and wavelength assignment schemes in multimode fiber networks. Two additional schemes for long haul networks are presented and evaluated over multimode fiber networks. First for alleviating the fairness problem in OBS networks using wavelength-division multiplexing as well as mode-division multiplexing while the second scheme for achieving higher throughput without sacrificing hop count fairness. We have also shown the significant benefits of using both mode division multiplexing and wavelength division multiplexing in real-life short-distance optical networks such as the optical circuit switching networks used in the hybrid electronic-optical switching architectures for datacenters. We evaluated four mode and wavelength assignment heuristics and compared their throughput performance. We also included preliminary results of impact of the cascaded mode conversion constraint on network throughput. Datacenter and high performance computing networks share a number of common performance goals. Another highly efficient adaptive mode wavelength- routing algorithm is presented over OBS networks to improve throughput of these networks. The effectiveness of the proposed model has been validated by extensive simulation results. In order to optimize bandwidth and maximize throughput of datacenters, an extension of TCP called multipath-TCP (MPTCP) has been evaluated over an OBS network using dense interconnect datacenter topologies. We have proposed a service differentiation scheme using MPTCP over OBS for datacenter traffic. The scheme is evaluated over mixed workload traffic model of datacenters and is shown to provide tangible service differentiation between flows of different priority levels. An adaptive QoS differentiation architecture is proposed for software defined optical datacenter networks using MPTCP over OBS. This scheme prioritizes flows based on current network state.