Abstract: In order to eliminate dispersion in a fiber communication system,based on the finite element method and perfectly matched boundary layers,an octagonal dispersion compensation fiber was proposed. The guiding properties such as fundamental mode,dispersion,confinement loss and nonlinear coefficient were obtained. Besides,it was shown that the negative dispersion over 200nm bandwidth was obtained (the minimum value was -1500ps/(nmkm) at =1.55m). Meanwhile,the fiber exhibited low confinement loss less than 3.3dB/km at 1.55m in the entire E+S+C band. Also,the nonlinear effect was eliminated effectively because of the low nonlinear coefficient.