Gigabit passive Optical Network (GPON) is a fiber-based access network that provides huge bandwidth in a cost effective and power efficient manner. The building blocks of passive optical network (PON) consists Optical Line Terminal (OLT), optical splitter, andanumberofOpticalNetworkUnits(ONUs). APassiveOpticalSplitterorCombiner broadcasts traffic from the (OLT) to the (ONU) downstream direction and transmits traffic from the (ONU) to the (OLT) upstream direction. Now aday most communication infrastructure replaced in optical communication so the number of user and power consumption increase and bandwidth capacity problem face, hence it needs investigation on performance and power link budget of optical transmission system. In this research work we evaluated performance analysis TDM of gigabit capable of passive optical network (GPON) system transmission for multiple users by taking one value of operating wavelength, fiber cable length and power with multiple scenarios for both upstream and downstream directions. The System is analyzed using OptiSystem simulation tool depending on values of Bit Error Rate, Q-factor and Eye-diagram from simulation results. In this performance analysis of PON improvement is achieved in terms of power saving is weighted against the impact of a possible degradation of the network performance and lifetime of the PON architecture. On the other hand these performance degradationscanbecontrolledandlimitedbythepowerefficienttimedivisionmultiplexing gigabit capable of passive optical network (TDM-GPON) access technology for high bit rate transmission.