Abstract:The transmission performance of polarization multiplexing-33% return to zero-differential quadrature phase-shift key (PM-33%RZ-DQPSK) and polarization multiplexing-carrier-suppressed return to zero-differential quadrature phase-shift key (PM-CSRZ-DQPSK) modulation formats is simulated in the paper. The three limiting factors, polarization mode dispersion (PMD), dispersion (CD), and nonlinear effect (SPM, self-phase modulation) are considered when simulating the transmission performance. The simulation results show that the impact of PMD, CD and nonlinear effect on polarization multiplexing system is greater than their influence on the non-polarization multiplexing system. Overall, the transmission performance of PM-CSRZ-DQPSK modulation format is more excellent than that of PM-33%RZ-DQPSK.