Abstract: The split-step Fourier transform method (SSFM) and its simulation process are presented in detail. Matlab was used to simulate the soliton propagation in the optical fiber. The influence of optical fiber attenuation on soliton propagation is discussed. It is pointed out that two optical solitons will strongly affect each other if they are very close, which makes the soliton shape aberrant. The EDFA was adopted to compensate the power of the soliton and its result was reviewed. It is concluded that dispersion is the major limitation in the optical soliton communication, 980 nm laser is selected to pump the EDFA to obtain better result.