In connection with the multi-wavelength all-optical regeneration system based on self-phase modulation in fibers, the effect of the average fiber dispersion for the quality factor Q improvement of regenerator is analyzed and a dispersion management optimization method is proposed. The stability of performance of the regenerator will degrade because of dispersion discrepancy between different wavelengths. By choosing the fiber length of dispersion compensating fiber and single mode fiber to make the dispersion curve of combination of two kinds of fiber approximately fitting with the dispersion curve corresponding to the best performance of each wavelength respectively, and keeping the compound dispersion curve in the better dispersion region, the stability of performance of the regenerator is effectively improved if the input signal power and offset of the filter are properly adjusted. The optimization of multi-wavelength dispersion management can be realized.