To fully utilize the capabilities of a SONET/ADM network, traffic grooming is needed to multiplex a number of lower-rate traffic streams into a higher-rate stream, and vice versa. Although the capacity of a SONET ring network can be upgraded by operating it over multiple wavelengths, the corresponding network design may be costly if it employs a large number of ADMs. A cost-effective design attempts to minimize the total number of ADMs used in the network while carrying the offered traffic. We introduce and evaluate the performance characteristics of two new traffic-grooming approaches for WDM ring networks, called single-hop and multihop. Our single-hop implementation uses the simulated-annealing heuristic. After placing all the traffic on “virtual circles”, we group the circles in order to reduce the number of ADMs in the network. Our multihop implementation places an ADM at each node based on the requested traffic in the traffic-demand matrix; then, it tries to groom the wavelengths which can be groomed. We select one of the nodes to be the “hub” node which has an ADM for each wavelength. The hub node, therefore, can “bridge” traffic between all of the wavelengths. Each algorithm is specified and illustrated by a simple example. Our results demonstrate that it is beneficial to use a single-hop approach based on simulated annealing for a small grooming ratio, but for a large grooming ratio and node number, we advocate the use of the multihop approach.