In an optical WDM FM-SCM optical communication system, the crosstalk arising from adjacent optical channels in a non-ideal demultiplexer has been calculated. The adjacent channel crosstalk is found to depend on certain system parameters, like WDM channel separation, number of subcarrier channels multiplexed and conveyed by a single optical carrier, and the isolation factor of the demultiplexer. The analysis shows that when the optical channel separation is greater than five times the highest subcarrier frequency used, the system is free from adjacent channel crosstalk.