Wavelength Division Multiplexing (WDM) is a boon of Light wave Technology as it increases the transmission capacity and enhances the transmission distance by using optical amplification. The capacity of the present system is limited by the noise generated by the amplifiers and interactions due to nonlinearities like Cross Phase Modulation (XPM), Self Phase Modulation(SPM), Four Wave Mixing(FWM) and Stimulated Raman Scattering(SRS). This paper focuses on the design of WDM Network in order to analyze the effect of XPM on the optical transmission rate. Also the papers focus on the suppression methods that can be used in order to remove the degrading effects of these non linearity's. © 2012 Springer-Verlag.