An asynchronous 10 Gb/s Ethernet packet with maximum packet size of 1518 bytes is synchronized and retimed to a master clock with 200 kHz frequency offset using a time lens. The NRZ packet is simultaneously converted into an RZ packet, then further pulse compressed to a FWHM of 400 fs and finally time-division multiplexed with a serial 1.28 Tb/s signal including a vacant time slot, thus forming a 1.29 Tb/s time-division multiplexed serial signal. Error-free performance of synchronizing, retiming, time-division multiplexing to a Terabit data stream and finally demultiplexing back to 10 Gb/s of the Ethernet packet is achieved. © 2011 Optical Society of America.