Water vapor is the main objective in cloud formation, hydrological cycle and radiative balance of the atmosphere. So detection of water vapor is important for the remote sensing and weather forecasting. The objective of this analysis is to design and analyze the fibre based DIAL (Differential absorption LIDAR)system for the measurement of atmospheric water vapor. The analysis is basically to find the suitable fibre for this application. Also designing the theoretical parameter of the fibre of choice and analysing with the commercially available fibres. © Research India Publications.