Encryption of information is required to secure data transmitted in optical networks. In this communication, authors propose simple and novel scheme for all-optical encryption–decryption at 120 Gb/s. Encryption–decryption system is based on XOR logic designed using semiconductor optical amplifier (SOA) based Mach–Zehnder interferometers. SOA model is presented theoretically from the stand point of high-speed application and implemented in encryption decryption setups for simulation. Extinction ratio for encrypted and decrypted signal is obtained as 10.5 dB and 8.30 dB respectively with satisfactory quality factor. The system has simple, compact architecture and easily integrable with other photonic devices.