A modified Mach–Zehnder interferometric phase sensitive amplifier (MMZI-PSA) configuration is proposed and simulated, which combined the four-wave mixing phase-sensitive amplifier (FWM-PSA) with the fiber interference phase-sensitive amplifier (FI-PSA). This modified scheme for an all-optical communication system can not only eliminate phase noise, but also reduce additional amplitude noise, reducing intrinsic amplitude noise and suppressing phase-to-amplitude noise conversion tremendously. Compared with the traditional FWM-PSA configuration, the proposed configuration can obtain higher gain, as well as reduce bit-error rate (BER) and error vector magnitude (EVM). The simulation results suggest that MMZI-PSA can effectively regenerate QPSK signals and obtain 6.9-dB gain. Furthermore, it can reduce BER to and reduce EVM to 22%, which improves system noise tolerance.