As different high speed signal-remodulation wavelength division multiplexed - passive optical network (WDM-PON) solutions up to 10 Gb/s have been proposed, researchers are going to further increase the data rate of PON towards 40 Gb/s or higher. However, scaling up from 10 Gb/s/wavelength to 40 Gb/s/wavelength PON is very challenging. Although many studies have been performed on upgrading the exiting 10 Gb/s network to 40 Gb/s, the study of the 40 Gb/s signal-remodulation network is very little. In this work, we will first study the chromatic dispersion effect on the signal-remodulation PON. Then, we will propose and demonstrate a signal-remodulation PON using 40-Gb/s downstream differential-phase shift keying (DPSK) and 40-Gb/s upstream on-off keying (OOK) signals. By using the reduced modulation index (RMI) of the downstream DPSK signal, the tolerance to the residual chromatic dispersion of the whole system can be greatly enhanced. Due to the reduced impact of the accumulated chromatic dispersion, the quality of the upstream remodulated OOK signal can be significantly improved. Besides, by detecting the downstream demodulated DPSK signal at the destructive output port of the demodulator, good quality of the demodulated DPSK signal can still be achieved.