In this paper, a WDM PON system is introduced with the help of Orthogonal Frequency Division Multiplexing (OFDM) with MMSE equalization technique and Optical Heterodyne detection technique. With OFDM we can achieve a system that is robustness against narrow band co-channel interference and has high spectral efficiency. Using Optical Heterodyne Detection we can optimize/convert channels of different frequencies to a same frequency range. Here 2 channels each of 12Gbps modulated with 4QAM OFDM is sent as a downstream data signal and re-modulated using On-Off keying (OOK) as a upstream signal of bit rate 2.5Gbps over a 60 km fiber separately for both signal OFDM with MMSE equalization technique is proposed in-order to avoid intersymbol interference (ISI). Finally the performance of the system is studied with the help of bit error rate and power budget calculation for an effective system. © Research India Publications.