Abstract: In this paper, the performance of 10 Gbps optical communication system with the dispersion managed RZ pulse has been reported. The return-to-zero (RZ) pulse is efficient for long-distance, high-bit-rate, wavelength division multiplexed (WDM) transmission dispersion-managed systems. In RZ pulse, the power is transmitted only for fraction of bit period. The effect of varying the dispersion parameter of single mode fiber on optical communication system has been noted.