As WDM results in an ever-increasing trend of traffic concentration, any failure on a single fiber-link or a single switching node will be catastrophic. Rapid restoration can recover the affected traffic so as to make the network more robust and reliable. The conventional restoration methods are designed mostly for reconfiguring the network topology; they are not immune from service interruption. In this thesis, an effective algorithm called backup-path-wavelength rearrangement scheme is proposed to reduce the connection blocking probability in an all-optical network. The proposed scheme performs wavelength retuning on the backup paths to improve the acceptance probability for new connection requests and introduce zero service interruption to the traffic in the network. The performance evaluation indicates that the connection blocking probability can be decreased greatly by the proposed scheme. The combination of BPWR and traffic grooming can efficiently alleviate the wavelength continuity constraint.