Performance analysis is carried out to evaluate the Bit Error Rate (BER) performance limitation of a Wavelength Division Multiplexing (WDM) network transmission system imposed by crosstalk due to Waveguide Grating Router (AWG) router. The analysis shows that penalty is higher at higher input power, higher number of wavelengths, larger number of nodes, and higher bit rates, while the BER graphs for first, second, and third effects are shown. This network is influenced by linear crosstalk, so, the distance or fiber length in the WDM network is significantly limited by linear crosstalk, which means nodes number, and number of network users are limited. Also, the bit rate is an effective factor, that, increasing it will reason penalty on the network.Index Terms-WDM, AWG, linear crosstalk, power penalty, nodes number, EDFA amplifier, BER and noise.