Based on the theoretical analysis of cascading of sum frequency-generation and difference-frequency-generation processes [χ(2)∶χ(2)] under quasi-phase-matching conditions, periodically poled lithium niobate (PPLN) and annealed-proton-exchanged waveguide (APE) were fabricated. Using the fabricated crystal of PPLN-APE, an all-optical switching experiment is carried out. The control pulse is generated by a Q-switched Co2+-doped MgAl2O4 laser with a wavelength of 1.54 μm. The CW signal beam is generated by a laser diode with wavelength of 1.5 μm. When the control pulse intensity reached 3 kW and the CW signal intensity reached 1 mW, the all-optical switching realized a switching efficiency of 13%. In the conclusion, the key technologies to improve the switching properties further is discussed.