A photonic integrated circuit that performs 40-Gb/s payload-envelope detection (PED) and 10-Gb/s label detection for asynchronous variable-length optical-packet switching is demonstrated. The circuit consists of an InP photonic integrated device combined with electronic GaAs and InP devices on a carrier. Asynchronous variable-length optical packets with 40-Gb/s return-to-zero (RZ) payloads and 10-Gb/s non-RZ (NRZ) labels are processed by the circuit. The circuit outputs a PED electrical signal that represents the temporal location of the payload and a 10-Gb/s electrical signal representing the optical label. The optical label is detected error free. The PED signal has a rise/fall time of 3-ns and 150-ps jitter. The PED signal was also used to erase and rewrite the optical labels error free.