Optical fiber are used for high capacity system compared to electrical mediums and this high capacity is linked to wavelength division multiplexing system so optical fibers are employed to transmit data, voice and other services in form of light pulse between the source and destination. WDM systems have the prospective to transmit several multiple signals at the same time. But the light signals reduce in intensity and optical pulses broaden when they travel a long distance inside the fiber. So it is vital to minimize the dispersion and amplify all the light signals at same time after a certain interval of light propagation to recover the original signal. InthisthesistheperformanceanalysisofdifferentchannelsofDWDMnetworkatdifferent parameter is done on the basis of fiber bragg grating and erbium doped fiber amplifier as dispersion compensation and amplification mechanism using opti system software. Here first DWDM network without EDFA is analyzed and observed, the signal Q-factor degrades as bit rate increase and secondly DWDM network using erbium doped fiber amplifier has been investigated and from result erbium doped fiber amplifier improve the transmission distance and have great impact on DWDM network. DWDM networks also suffer from dispersion and to compensate this dispersion fiber bragg grating is used and the system performance increase by using Erbium doped fiber amplifier and Fiber Bragg grating. And finally the dispersion and attenuation effect on the DWDM network is analyzed with different fiber length at different transmitting power, data rate , channels in DWDM network using fiber bragg grating and erbium doped fiber amplifier . It is observed that one can easily take DWDM for new deployment for a given distance, data rate, transmission power and capacity especially for campus and huge private and public service that needs long haul high traffic network.