This paper introduces a kind of Adaptive Optical Label Packet Switching (AOLPS) technology. Based on Optical Packet Switching (OPS), AOLPS uses optical label to achieve self-routing, and the size of optical packet is self-adaptive. At the edge nodes, IP packets are fist classified into different first-in-fist-out memories (FIFOs) according to their priority levels and destinations, and then being encapsulated into optical packets. The traffic at each FIFO is real-time monitored, and the controller in edge node employs an optimal strategy to generate suitable sized packets for transmission. Large sized packets will be adopted when traffic is heavy, and small sized packets will be used when traffic is light. This self-adaptive switching granularity can greatly improve the network performance.