Performance of Wavelength Division Multiplexing (WDM) System is analyzed using Dispersion CompensatingFiber. In this work, Optimized link of 8-channel WDM (Wavelength Division Multiplexing) system using OptiSystem is designed. Comparison of the link performance is investigated at different wavelength i.e. 980nm, 1300nm and 1550nm. The better Performance of the WDM link can be achieved at wavelength of 1550nm as compared to 1300 and 980nm using dispersion compensating fiber along with single mode fiber for link length of 105 km operating at data rate of 3Gb\s with 8-channel of WDM System. The BER, Q-factor and eye diagram have been used for evaluating the performance of the system.