In this paper, based on the proposed simulation model, the impact of dispersion on the systems performance in 160Gbit/s optical communication systems is detailedly discussed. As chromatic dispersion (CD) and polarization mode dispersion (PMD) are caused by different physical effect, the effects of CD and PMD on systems performance are also analyzed separately in the paper. At first, the CD and CD slope tolerance in 160Gbit/s systems are carefully simulated and analyzed, at the same time, self-phase modulation (SPM) effect is also discussed in this part, and the result shows that for 1dB eye-opening penalty, CD tolerance would be about ±3.1ps/nm and CD slope and SPM also all seriously limit the transmission distance of systems. Furthermore, the impact of PMD on systems property are discussed by virtue of statistical method, and result shows that PMD tolerance of 160Gbit/s is 0.7ps with the outage probability of 10-5 of 1dB eye-opening penalty and it will increase to 1.8ps for the first-order PMD compensated systems. These results show that CD, CD slope, PMD and SPM all are key challenges in 160Gbit/s systems.