Abstract: We introduced the dispersion compensation principles of dispensation compensation fiber (DCF) and fiber Brag grating (FBG), compared their advantages and disadvantages, proposed adding the FBG into the end in traditional optical fiber transmission systems. We designed a transmission system with a capacity of 40Gbit/s by using Optisystem software and studied three dispersion compensation schemes. If the FBG dispersion compensation was used only, its Q value was 3.745 and its bit error ratio (BER) was 7.41942e-5 with the optical signal transmission of 400 km. The scheme of DCF static mixed compensation and the combination scheme of static and dynamic dispersion compensation were simulated,and the Q value and BER of the two schemes for transmission of the same distance were compared. It is proved that the scheme combined the static with the dynamic compensation can improve the optical transmission performance.