We demonstrate submicrosecond polarization alignment of nonreturn to zero 10-Gbit/s optical packets using an all-optical polarization attraction effect in a low polarization-mode dispersion-shifted fiber. We experimentally demonstrate the alignment of optical packets having durations of 205 and 409 ns using a counter-propagating four-wave mixing process. To evaluate this technique, consecutive packets were aligned with distinctly different polarization states using a fiber interferometer. We experimentally demonstrate the recovery of optical packets that were lost due to their state of polarization (SOP) misalignment with the receiver. Polarization stability of the proposed system was assessed over a period of 30 min and it was observed that the scheme was able to correct the SOP and equalize the received optical power.