A light source apparatus with modulation function has a wavelength conversion module (75) composed of a nonlinear optical material with a structure having a nonlinear constant modulated periodically. It outputs a difference frequency or sum frequency produced by multiplexing pumping light from semiconductor laser light sources (71) and (72) with different wavelengths through a WDM coupler (74) and by launching the multiplexed light into the optical waveguide. The semiconductor laser light source (72) includes a diffraction grating. The semiconductor laser light source (71) includes a section for modulating output light emitted from its semiconductor laser, and is connected to an external FBG (73) which has a reflection band narrower than a resonance wavelength spacing determined by the device length of the semiconductor laser. The FBG (73) is supplied with the modulated output.