Abstract Optical soliton communication is the frontier research topic of optical fiber communication. In this paper, we study optical solitons generated by passively mode-locked Erbium-doped (Er-doped) fiber (EDF) laser. We analyze the variation of nonlinear equilibrium point parameter N of the passively mode-locked EDF laser in the role of group-velocity dispersion (GVD) and small-signal gain, and adjusting system parameter N is as close as to possible to 1. The ground state first-order optical soliton which generated through system parameter optimization of the passively mode-locked EDF laser will improve the efficiency and stability of optical soliton communication system. The research of this paper will have provided the theoretical foundation of parameter optimization in a passively mode-locked EDF laser. And it will be possible for the passively mode-locked fiber laser in optical fiber communication system to be applied from the laboratory stage to the practical application.