Dense wavelength division multiplexing (DWDM) networks are very attractive with applying development of arrayed-waveguide grating (AWG) N x N multiplexers. This AWG multiplexer device plays an important role in WDM networks because of its unique N input and N output geometry. We design and analyze an integrated 32×32 arrayed waveguide grating wavelength switch based on SOI waveguides. We demonstrate three application of 32×32 arrayed waveguide grating, such as: Multiplexing/Demultiplexing, Optical add/drop multiplexing (OADM) and wavelength switch. The 32×32 arrayed waveguide grating is designed with including phase modulator. The simulation result and working principle for output channel wavelength shift is matched. In order to improve AWG switch, we integrate AWG switch and multimode interference (MMI). AWG with MMI switch coupler was connected at the end of the input waveguide. Beam propagation method with FDTD method are utilized for simulation works. The deviation of crosstalk and insertion loss value is small, and specifically the crosstalk is lower than -30 dB.