This paper investigates the transmitter and receiver performance of an active rotating tropospheric stratospheric Doppler wind Lidar. A 532 nm laser was determined as the detection wavelength based on transmission and scattering aspects. A ten-fold Galileo beam expander consisting of spherical and aspherical mirrors was designed and produced to compress the outgoing laser’s divergence angle using ZEMAX simulation optimization and optical-mechanical mounting means. The structure and support of the 800 mm Cassegrain telescope was redesigned. Additionally, the structure of the receiver was optimized, and the size was reduced. Meanwhile, the detectors and fiber mountings were changed to improve the stability of the received optical path. A single-channel atmospheric echo signal test was used to select the best-performing photomultiplier tube (PMT). Finally, the atmospheric wind field detection results of the original and upgraded systems were compared. The results show that after optimizing the transmitter and receiver, the detection altitude of the system is increased to about 47 km, and the wind speed and wind direction profiles match better with radiosonde measurements.