The 280 G-chip/s encoding and decoding rate is experimentally demonstrated. The encoder and decoder consisting of superstructured fiber Bragg gratings (SSFBGs) are fabricated using “equivalent phase shift” method. Interchannel interference noise is also considered and evaluated, and the 40 Gb/s×2 channel signal multiplexing is illustrated. In addition, a nonlinear optical loop mirror (NOLM) within the receiver is introduced to improve the system performance under two-channel operation, which reflects low-intensity signals, and transmits the high-intensity signal. The NOLM can act as a nonlinear processing element capable of reducing both the pedestal and the width of the associated code recognition pulse, and the original 7.7 ps decoded pulse is compressed to 3.8 ps. The agreement between experimental and calculated results is excellent, and the feasibility of all optical high-rate encoding and decoding using SSFBG and NOLM is verified. High speed all optical encoding and decoding can be used in point to point optical code division multiplexing (OCDM) system and optical packet-switched networks.