We investigate reduction of mode partition noise of a spectrally sliced Fabry-Perot laser diode (FP-LD) for application to seeded DWDM systems. The proposed scheme for the noise reduction incorporates a fiber-based Mach-Zehnder interferometer (MZI) and a reflective semiconductor optical amplifier (RSOA). The MZI enables to reduce a relative intensity noise (RIN) more than 3 dB with better noise distributions. Experimental results of 10-Gb/s signal transmission exhibit a considerable bit-error-rate (BER) reduction by three orders of magnitude at the given received power. After the noise reduction, the FP-LD is applied to a 10-Gb/s DWDM system as a seed-light-source. In a local-seeding scheme, return-to-zero (RZ) and carrier-suppressed (CS)-RZ signal formats are compared as a function of transmission distance. Furthermore, a back-reflection induced impairment is evaluated in a remote-seeding scheme. We also count the number of useable channels to show the feasibility of DWDM transmission. (C) 2016 Optical Society of Americ