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In this paper, a simple design of all-optical photonic crystal (PhC) based 1:2 line decoder has been proposed and its operating principle is based on light beam interference. The designed structure has a hexagonal arrangement of air holes in Si substrate with a finite slab height. In our proposed structure, different path lengths have been made so that the light beams should interact out of phase. Effective refractive index method has been adopted to reduce the simulation time. The Finite Difference Time Domain (FDTD) and Plane Wave Expansion (PWE) methods have been applied to evaluate the proposed structures. The required footprint area for proposed device is reported as 215 µm2. Minimum contrast ratio between the logic states of “1” and “0” is obtained as 10 dB. This device is designed based on solely linear optical phenomena in a holes-in-slab PhC structure. Therefore, mechanically stabled, ultra-compact design and simple working mechanism of the proposed optical decoder can be a potential candidate for future generation Photonic Integrated Circuits (PICs).