Transmission characteristics of first-order and second-order solitons propagating through a nonlinear optical fiber coupler are investigated by analysing the coupled nonlinear Schrödinger equations (NLSEs). We show that it is most advantageous to use fundamental solitions to make an ideal optical switch which can be used in multiplexing and/or demultiplexing soliton signals from different sources, and that such a switch can have a high switching efficiency and intact soliton output. Also, we have analyzed the relation between critical power of a soliton switch and that of a cw switch, and have given the soliton “critical energy” in an explicit form in terms of the physical parameters. Further, we give evidence to show that soliton bound-states and different solitons can be generated through soliton conversion in a nonlinear coupler.