We report on the reduction of polarization-induced performance degradation in WDM PON utilizing MQW-SLD-based ASE source for injection locking to FPLD. The results show that, to suppress the polarization-induced Q penalty sufficiently less than 0.5 dB, the MQW-SLD output should be depolarized within the locking range of the wavelength-locked FPLD. (c) 2007 Optical Society of America.