A system and method for modularly scalable architecture for optical networks are provided. In one embodiment, a node for an optical network comprises a plurality of in-line switches connected to an optical ring and operable in a first state to both pass an optical signal received from the optical ring to an associated coupler and pass an optical signal received from the associated coupler to the optical ring. The optical signal carries traffic in a plurality of channels. A drop coupler is coupled to a first in-line switch and is operable to receive an optical signal from the in-line switch where the switch is in the first state, pass a first copy of the optical signal back to the in-line switch for passing to the optical ring, and drop a second copy of the optical signal to a distributing element. The distributing element is operable to receive the second copy and pass traffic in one or more channels of the second copy. A filter is operable to reject one or more channels of the first copy to generate a passthrough signal. A combining element is operable to receive traffic in one or more channels to be added to the optical ring and combine the received traffic to generate an add signal. An add coupler is coupled to a second in-line switch and is operable to receive the passthrough signal from the second in-line switch when the switch is in the first state, add the add signal to the passthrough signal to generate a combined signal, and pass the combined signal to the second in-line switch for passing to the optical ring.