The all-optical wavelength conversion (AOWC) based on parallel dual-pump for polarization multiplexing 16 quadrature amplitude modulation arthogonal frequency division multiplexing (16QAM-OFDM) signal in semiconductor optical amplifier (SOA) is theoretically analyzed and simulated. The theoretical analysis and simulation results show that the polarization multiplexing 16QAM-OFDM signal can be received without crosstalk after AOWC by direct-detection, besides that several conditions which affect the AOWC conversion efficiency in this system are analyzed, such as frequency spacing of parallel pumps, SOA injection current, average power and the azimuth of optical signal. This simulation results also validate the correctness of theoretical analysis at the same time.