ABSTRACTThe paper examines the performance of Modified Manchester (MM) modulation scheme over wavelength division multiplexing (WDM) in high-speed optical communication links. The MM as a new modulation technique has a narrow spectral width compared to conventional Manchester coding, which allows its implementation in WDM systems beneficial. In this study, the performance characteristics of MM and conventional Manchester modulation formats are assessed in WDM system at 10 Gb/s bitrate for each channel, for the least allowable channel spacing as well as tolerance to chromatic dispersion (CD). It is revealed from the results of simulation that MM performs meaningfully well in comparison with conventional Manchester in terms of tolerance against narrow optical filtering, spectral efficiency, which is improved by 32% and CD tolerance, which is improved by +100 ps/nm. Sixteen wavelength channels (16 × 10 Gb/s) are modulated to provide 160 Gb/s data capacity, which was transmitted successfully over 224 km standard single mode fibre (SSMF) using MM while the conventional Manchester only covered about 157 km.