In this paper, an optical time-domain fractional Fourier transformation (FRFT) system is proposed to achieve the minimum distortion transmission under combined effects of chromatic dispersion and self-phase modulation (SPM). In the new method, the pulses operated as FRFT will propagate in a new domain, in which the waveform in time domain will keep nearly unchanged through the transmission. The novel method achieves a 400 km optical transmission for an optical pulse with the full width at the 1/e point of peak power of 80 ps without any dispersion compensation and the pulse offers a nice performance with negligible nonlinear distortion. Compared with the soliton communication, this scheme shows more advantages on linear and nonlinear distortions without strict restriction to input pulses.