This paper presents a detailed study on Wavelength Division Multiplexing -Passive Optical Network (WDM-PON) light source of spectrum sliced multiwavelength fiber ring laser and simple optical Lyot filter. First, the principle of the Lyot birefringent filter for comb generation of the multiwavelength laser is theoretically analyzed. Then we incorporate the Lyot filter and a semiconductor optical amplifier (SOA) as the gain medium into a ring laser cavity. Finally, we experimentally demonstrate an SOA based multiwavelength fiber ring laser using Lyot birefringent filter. Multiwavelength operation up to 25 laser lines with the signal-to-noise ratio over 30dB and 0.8nm wavelength spacing was demonstrated. The power equalize is within 2 dB and the line width 0.108nm is close to the equipment resolution. This multiwavelength laser source has also been proved to have good stability after consistently 90 min time evolution. In general, this multiwavelength laser source has the advantage of simple structure, multiwavelength operation, high SNR and good stability.