In this paper, a numerical study of wavelength conversion based on cross-gain modulation (XGM) has been conducted for the first time using the photonic crystal semiconductor optical amplifier (PC-SOA). A PC-SOA and an optical filter have been used in this design. Nonlinear effects, such as carrier depletion (CD), carrier heating (CH), and spectral hole burning (SHB), have been included in the PC-SOA. The rate and propagation equations have been solved using the finite difference method (FDM). The optimal wavelength conversion based on XGM has been obtained in the PC-SOA through the application of 3.2fJ and 1.0pJ energies for the input and the continuous wave (CW) signals, respectively, and a 15mA injection current for the biasing. The effects of the injection current and input signal energies on wavelength conversion have also been investigated for further examination of the impact of the XGM mechanism on wavelength conversion. It has finally been demonstrated that the PC-SOA exhibits better conditions and performance than the conventional bulk SOA in wavelength conversion based on XGM. Furthermore, the PC-SOA provides a far more appropriate alternative than the bulk SOA for all-optical integrated circuits due to the smaller length of the device and the lower value of injected current.