A polarization controlled switchable multiwavelength erbium-dopedfibre laser with overlapping cavities is proposed. The wavelengths are specified by two Bragg gratings in polarization-maintaining PANDA fibre. The proposed laser can be designed to be operated in stable four-wavelength or wavelength switching modes only by simple adjustment of two polarization controllers. For wavelength switching, four single-wavelength, six dualwavelength, and four three-wavelength operations have been obtained. The minimum wavelength spacing is only about 0.4 nm.