One embodiment provides an intelligent passive optical network (PON) node. The intelligent PON node includes a number of optical line terminal (OLT)-side transceivers coupled to a first optical fiber, a number of optical network unit (ONU)-side transceivers, a switching mechanism configured to couple the OLT-side transceivers and the ONU-side transceivers, and a controller configured to control the coupling operation of the switching mechanism. The OLT-side transceivers are configured to transmit optical signals on a number of wavelength channels to and receive optical signals on a number of wavelength channels from the OLT. A respective ONU-side transceiver is configured to transmit optical signals to and receive optical signals from a downstream PON.