Chaotic signals provide us security by exploiting the useful idea of encrypting message at the physical layer but there is also need for more and more bandwidth. We can provide security and bandwidth at same instance by using Dense Wavelength Division Multiplexed (DWDM) chaotic communication. Chaotic synchronization is vital for chaos based system which is greatly effected due to fiber polarization mode dispersion (PMD), non-linearities and dispersion. In this work we have analyzed the combined effect of polarization mode dispersion and non-linearities on 2 channel DWDM chaotic system.