We propose a bidirectional add/drop amplifier (BADA) module with an N x N arrayed waveguide grating multiplexer. The relative intensity noise that degrades bidirectional transmission system severely is suppressed by interleaved wavelength allocation. with two proposed BADA modules, we demonstrate bidirectional transmission and add/drop multiplexing of 8 x 2.5 Gb/s WDM signal over 120-km conventional single mode fiber with less than 0.6 dB power penalty in the receiver sensitivity.