This paper presents the study on the effect of filter variation on the coarse wavelength division multiplexing (CWDM) system. The filter curve will affect the performance of the CWDM system due to changes of received power lever and isolation of the signal. The significant impact on the received power level and isolation can be found when the required signal is isolated from unwanted signal by the steep curve of filter. As a result, BER of 1.0x 10-12 was obtained corresponding to receive power level of -24.27 dBm with isolation of 23.22 dB. When the wavelength spacing is reduced to 1nm, the isolation is only 11.30 dB and BER increased to 5.49x10-7 with a received power of -15.39 dBm.
