A two-dimensional circular photonic crystal ring resonator (PCRR)-based add-drop filter (ADF) is designed for ITU-T G.694.2 eight-channel coarse wavelength division multiplexing systems. The resonant wavelength and pass-band width of the ADF are 1491 and 13 nm, respectively. Close to 100% of coupling and dropping efficiencies and a 114.69 quality factor are observed through simulation. Then the coupled mode theory (CMT) analysis of circular PCRR-based ADF is attempted to compare obtained CMT response into simulated finite difference time domain method response. The overall size of the device is much smaller; that is, , which is highly suitable for photonic integrated circuits and all optical photonic network applications.