An all-optical 3R regenerator (AO3R) and a method for using the AO3R to retime, reshape and retransmit an optical signal are described herein. The AO3R includes a polarizer that receives an input optical signal which is of unknown, potentially varying phase and outputs a stable polarized input optical signal. The AO3R also includes a first interferometer (e.g., interferometric converter module) that retimes and reshapes the polarized input optical signal and transmits the retimed and reshaped polarized input optical signal as a polarized output optical signal. The first interferometer is able to retime the polarized input optical signal with the aid of a laser and a clock recovery mechanism. The clock recovery mechanism is basically an electrical feedback loop that uses a second interferometer and various electrical components to recapture a clock signal of the polarized input optical signal by comparing a data stream in the polarized input optical signal to a data stream in the polarized output optical signal. The laser uses the recaptured clock signal to drive the first interferometer so that it can retime the polarized input optical signal.