A large dynamic frequency up-conversion scheme based on parallel dual-drive Mach–Zehnder modulators (DD-MZM) and balance detection is proposed and demonstrated experimentally. By optimizing the distribution ratio of the optical carrier power and the IF signal power between the two DD-MZMs, the third-order intermodulation components in two sub-links cancel each other upon the balanced photodetector. The measured results show that the large spurious-free dynamic range of 112.3 dB·Hz4/5 is obtained for an intermediate frequency signal of 2 GHz up-converted to 18 GHz, which is a 14.8 dB enhancement compared with the traditional carrier suppression double-sideband modulation mixer. The frequency up-conversion performance of the established system for the broadband signal is measured with the results demonstrating the feasibility of the proposed optimization scheme.