For applications such as fiber optic networks, wavelength conversion, or extracting information from a predetermined channel, are required operations. All-optical systems, based on non-linear optical frequency conversion, offer advantages compared to present systems based on optical-electronic-optical (OEO) conversion. Thanks to the large nonlinear susceptibility of AlGaAs (d14 = 90pm/V) and mature device fabrication technologies, quasi-phasematched non-linear interactions in orientation-patterned AlGaAs waveguides for optical wavelength conversion have already been demonstrated. However, they require long interaction length (~ centimeters) and a complex fabrication process. Moreover, the conversion efficiency remains relatively low, due to losses and poor confinement. We present here the design and fabrication of a very compact (~ tens of microns long) device based on tightly confining waveguides and photonic crystal microcavities. Our device is inherently phase-matched due to the short length and should significantly increase the conversion efficiency due to tight confinement and high cavity-Q value. We characterized the waveguides, measuring the propagation loss by the Fabry-Perot method and by a variant of the cutback method, and both give a consistent loss value (~5 dB/mm for single-mode waveguides and ~3 dB/mm for multimode waveguide). We also characterized the microcavities measuring the transmission spectrum and the cavity-Q value, obtaining Q's as large as 700.