This paper introduces a new optical device model named as Optical Cross Add and Drop Multiplexer (OXADM) which is potentially useful in CWDM metro area network. The device uses the combined concepts of optical add/drop multiplexing and optical cross connect between two main transmission lines in order to implement the wavelength routing operation [10]. MEMs optical switches are integrated in the device to make it re-configurable. With its excellent features, the device is particularly designed to improve the network efficiency, flexibility and survivability [7, 8]. The device can be used in point-to-point, ring or mesh network topology to provide functionalities such as routing, supervision, transport, multiplexing and restoration of client digital signals processed predominantly in the optical domain [7]. The wavelengths on each optical trunk can be switched into each other while implementing add and drop functions simultaneously. The multiplexer has undergone performance test at 2.5 Gbit/s (OC-48) with BER less than 10 -9 . The maximum achievable transmission length by the OXADM is 71 km without amplification with insertion loss of 6 dB.