In optical fiber communication system the transmission of signal through optical fiber in long distance with less repeaters can reduce the system’s cost and maintain the signal quality. For long-distance transmission Nonlinear effect and dispersion increases with distance and degrade the signal quality of the optical-interleave Division multiple Access (O-IDMA) system. To reduce Nonlinear effect and dispersion Gaussian pulse has been replaced by Solitons and evaluate the performance. MATLAB has been opted to simulate the Optical fiber channel based IDMA system. Simulation outcomes shows that Solitons may be better option in place of Gaussian pulse for long distance transmission.