Optical burst switching or OBS is a new technology that represents a balance between circuit and packet switching

while in the Labeled OBS （ LOBS） Multiprotocol Label Switching or （MPLS） and OBS

which is able to supply good support for OBS network in respects of QoS are combinated

and traffic engineering and network survivability is based on the MPLS technology.In this paper we propose the mechanism for LOBS and its principal.and point out its advantages over other optical networks in terms of traffic engineering and network survivability.