We report on quadrature demultiplexing of a quadrature phase-shift keying (QPSK) signal into two cross-polarized binary phase-shift keying (BPSK) signals with negligible penalty at bit-error rate (BER) equal to 10(-9). The all-optical quadrature demultiplexing is achieved using a degenerate vector parametric amplifier operating in phase-insensitive mode. We also propose and demonstrate the use of a novel and simple phase-locked loop (PLL) scheme based on detecting the envelope of one of the signals after demultiplexing in order to achieve stable quadrature decomposition.