Dispersion compensation is the most important feature required in optical fiber communication system because absence of it leads to pulse spreading that causes the output pulses to overlap. If an input pulse is caused to spread such that the rate of change of the input exceeds the dispersion limit of the fiber, the output data will become indiscernible. In this paper various dispersion compensation techniques are discussed like-Dispersion Compensating Fibers (DCF), Electronic Dispersion Compensation (EDC), Fiber Bragg Grating (FBG) and digital filters.