A system and method for forwarding fault information in an optical network is disclosed. Responsive to a fault being detected at a node, the fault information is forwarded to the destination node in the form of a loss-of-signal condition by turning off laser transmitters used to propagate the signal towards its destination. Thus, a node or other network element not capable of generating an alarm signal consistent with an established alarm signaling protocol, such as a SONET alarm indication signal (AIS) or an SDH multiplexer section alarm indication signal MS-AIS, may still forward the fault condition to a downstream element.