Polarization-insensitive (PI) phase-transmultiplexing (PTM) of a 10-Gb/s return-to-zero ON-OFF keying (RZ-OOK) pump and a 10-Gb/s RZbinary phase-shift keying (RZ-BPSK) probe to 20-Gb/s RZ-quadrature-PSK (RZ-QPSK) has been successfully demonstrated for the first time in a passive, birefringent AlGaAs waveguide, utilizing PI cross-phase modulation (PI-XPM). For differential QPSK (DQPSK)-detection, a 10 − 9-BER pre-amplified receiver sensitivity penalty of ≈ 2.5 dB for the in-phase component and ≈ 4.9 dB for the quadrature component were found. The penalties were relative to the FPGA-precoded RZ-DQPSK baseline for a pump-probe detuning of ≈ 12 nm, when the probe state of polarization was scrambled and the pump was launched off-axis into the waveguide.