Photonic networks have gained attention as the next generation optical communication system because their communication processes use wavelength information in the optical region. Generally, because the polarization states of the optical wavelengths propagating in optical fibers are irregular, strong noise is generated because the optical devices constructing the photonic network exhibit a dependence on polarized light. To suppress this noise, polarization control becomes an important technology. In this research, we propose a new polarization controller to bring out the superior features of the surface-emitting laser and examine its dynamic characteristics. In this paper, we also conduct analysis based on the multimode rate equations that consider high-order lateral modes and polarization modes, and dynamic analysis of the polarization controller based on analyzing the optical inverter characteristics obtained by the lateral mode switching, which becomes the fundamental principle of the light input and output. Based on the static and dynamic characteristics, we demonstrated the possibility of a high-speed polarization controller using a surface-emitting laser structure. © 2006 Wiley Periodicals, Inc. Electron Comm Jpn Pt 2, 90(1): 41– 49, 2007; Published online in Wiley InterScience (www.interscience.wiley.com). DOI 10.1002/ecjb.20258