The influence of intra-cavity propagation delay in message encoding and decoding using chaotic semiconductor lasers is numerically investigated. A message is encoded at the transmitter laser by a chaos shift keying scheme and is decoded at the receiver by comparing its output with the transmitter laser. The requisite intra-cavity propagation delay in achieving synchronization of optical chaos is estimated by cross-correlation analysis between the transmitter and receiver lasers’ output. The effect of intra-cavity propagation delay on the message recovery has been analyzed from the bit error rate performance. It is found that despite the intra-cavity propagation delay magnitude being less, it has an impact on the quality of message recovery. We also examine the dependency of injection rate, frequency detuning, modulation depth and bit rate on intra-cavity propagation delay and associated message recovery quality. We found that the communication performance has been adequately improved after incorporating intra-cavity propagation delay correction in the synchronization system.