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The two-way communication system with enhanced reachability, capacity and arrangement of large number of users by utilising a hybrid PON of WDM with TDMA is suggested. It is designed using generic architecture of a FTTx network using PON. The expanded reach permits central workplaces to turn out to be progressively adaptable and less in number, while the expanded accumulation decreases the size and number of optical links required, empowering littler channels to be utilized. The 150 km lengthy 5 Gbps TWDM PON is developed by utilising EDFA, WDM mux-demux splitter and APD photo detector and implemented using OptiSystem 7.0. Coarse WDM is applied on the non-return to zero (NRZ) transmission system. In The system is evaluated on Quality factor, BER and eye diagrams.