Normal GIGA ETHERNET continuously transmits or receives 8B/10B codes including data codes, idle codes or configuration information. In ETHERNET network, one computer links one port of switch through CAT5 and that is OK. But for EPON, it is different. All ONUs share one fiber in upstream, if we inherit the GIGA ETHERNET PHY, then collision will occur. All ONUs always transmit 8B/10B codes, and the optical signal will overlay. The OLT will receive the fault information. So we need a novel EPON PHY instead of ETHERNET PHY. But its major function is compatible with ETHERNET’s. In this article, first, the function of PCS sub layer is discussed and a novel PCS module is given that can be used in not only EPON system but also in GIGA ETHERNET system. The design of PCS is based on 1000BASE-X PCS technology. And the function of 1000BASE-X PCS should be accomplished first. Next we modify the design in order to meet the requirements of EPON system. In the new design, the auto negotiation and synchronization is the same to the 1000 BASE-X technology.