This paper considers a network restoration algorithm for all-optical WDM networks. As the increasing traffic and transmission speed, any failure on the networks will lead to loss of huge data and disruption of the services. Therefore, a network restoration algorithm is necessary for the high-speed all-optical networks. This paper suggests a distributed restoration algorithm for line or channel level failures under the dynamic rerouting. For the algorithm, some measures for performance evaluation are explicitly derived and simulation studies are exploited to evaluate its usability by SLAM(Simulation Language for Alternative Modeling) II.