In this paper, the optical gain properties of the water/alcohol soluble conjugated polyelectrolyte (Poly[(9,9-bis(3'-((N,N-dimethyl)-N-ethylammonium)propyl)-2,7-fluoren e)-alt-2,7-(9,9-dioctylfluorene)]) (PFN-Br) and its potential of being applied in future electrically pumped organic lasers were revealed and systematically studied. To the best of our knowledge, no studies on the optical gain properties of PFN-Br or its prototype, poly[(9,9-bis(3'-(N,N-dimethylamino)propyl)-2,7-fluorene)-alt-2,7-(9,9-d ioctylfluorene)] have been reported before this work. These conjugated polyelectrolytes were widely used as interlayer in organic light emitting diodes or organic solar cells. The thickness of such interlayer is usually less than 10 nm, which is considered not sufficient for supporting light waveguiding. Therefore, the thickness of the PFN-Br layer used in this work was increased to more than 100 nm. Through, carefully study, the polymer was found to possess a low threshold of amplified spontaneous emission (ASE) (~11 μJ cm<sup>-2</sup>) and a small ASE cutoff thickness (<50 nm). It is an efficient blue emission (~456 nm) gain media. The ASE peak of the PFN-Br film red-shifted as the thickness increased from 50 to 220 nm. By utilizing the great resistance of PFN-Br against the organic solvent, such as toluene, PFN-Br/F8BT bilayer devices on quartz and PFN-Br/MEH-PPV bilayer devices on ITO glass were fabricated and characterized. In the PFN-Br/F8BT bilayer devices, it was found that the PFN-Br interlayer has very limited impact on F8BT. The ASE threshold of F8BT increase only 2 times, compared to F8BT monolayer device, when 100 nm PFN-Br layer was introduced beneath the F8BT film. No significant change in optical gain or loss were observed. Most of the extra loss in F8BT due to the introduction of PFN-Br is attributed to the larger refractive index of PFN-Br comparing to quartz substrate. Furthermore, in the PFN-Br/MEH-PPV bilayer devices on ITO glass, introducing PFN-Br interlayer resulted in optimized ASE performance of MEH-PPV comparing to that on bare ITO surface. The ASE threshold of MEH-PPV was reduce as much as 60% (from 402 μJ cm<sup>-2</sup> to 160 μJ cm<sup>-2</sup>) while PFN-Br layer was inserted between ITO and MEH-PPV. The PFN-Br layer modified the waveguiding modes, and reduced the interaction between excitons and ITO electrodes. As a result, the ASE performance of MEH-PPV was improved. The findings of this report indicating that PFN-Br is not only a good carrier transport material but also a highly-efficient gain medium. Combining its merits in different fields, PFN-Br is expected to have great potentials filling multiple roles in future organic electrically pumped lasers.