The effects of an external optical input on a bistable laser diode (BLD) with inhomogeneous current injection are discussed. The bistable behavior of optical output versus injection current is shown to be variously modified, depending on the wavelength and power of the optical input. Optical set and reset operations and optical logic achieved by optical input pulses can be explained by these characteristics of a BLD modified by an external optical signal. Analysis using rate equations is also offered to help interpretation of experimental results, as well as the optical output for optical input characteristics, dependent on the wavelength of the optical input and the bias current injected into the BLD.