The propagation of the laser pulses in the underdense plasma is a very crucial aspect of laser-plasma interaction process. In this work, we explored the two regimes of laser propagation in plasma, one with a 0 < 1 and other with a 0 10. For a 0 < 1 case, we used a cold relativistic fluid model, wherein apart from immobile ions no further approximations are made. The effect of the laser pulse amplitude, pulse duration, and plasma density is studied using the fluid model and compared with the expected scaling laws and also with the PIC simulations. The agreement between the fluid model and the PIC simulations are found to be excellent. Furthermore, for a 0 10 case, we used the PIC simulations alone. The delicate interplay between the conversion from the electromagnetic field energy to the longitudinal electrostatic fields results in the dispersion and so the red-shift of the pump laser pulse. We also studied the interaction of the dispersed pulse (after the propagation in underdense plasma) with the sub-wavelength two-layer composite target. The ions from the thin, low-density second layer are found to be efficiently accelerated to ∼ 70 MeV, which is not found to be the case without dispersion.