Disclosed herewith is a PON system and a bandwidth controlling method capable of controlling congestion with use of an upstream bandwidth in a PON section efficiently when congestion occurs in a gateway (GW) connected to an OLT. An OLT connected to a plurality of ONUs through a passive optical network (PON) and to a gateway (GW) through a communication line, when receiving a congestion occurrence notice indicating a congestion occurred output number from a GW, identifies the identifier of the ONU that is using a GW output line having the congestion output port number and shifts the bandwidth controlling of the PON section in a normal mode for allocating a bandwidth to each ONU normally to that in a bandwidth suppression mode for allocating a congestion time allowable bandwidth that is less than the current bandwidth to the ONU having the identified ONU identifier and a bandwidth to each of other ONUs according to its transmission queue length.
