Aiming at the powerequalization in all-optical networks, an optical configuration of two-stage Erbium dopedfiber optical power limiting amplifiers with incorporated differential loss loop ispresented. The effects on the dynamic range and noise characteristic by the loss value andrelative position were investigated theoretically and experimentally. The optimum valuesare around 60% for the position and 5～8 dB for the loss, respectively. Accordingly, an optical powerlimiting EDFA with a large dynamic range (over 20 dB under 30 mW pump power) isdemonstrated. The average output power within the dynamic range at the signal wavelengthof 1553 nm is in excess of 290 μW.