we experimentally demonstrated a multiwavelength Er-doped fiber (EDF) ring laser system by employing an all-fiber Lyot filter (AFLF) and highly nonlinear fiber (HNLF). The AFLF was employed as a polarizing filter to generate nonlinear polarization rotation (NPR) effect and the highly dense and narrow bandwidth comb-like channels. 1 km long HNLF was used to enhance the nonlinearity of laser cavity and suppress the mode competition for multiwavelength operation. In the experiment, total 97 channels laser output within 3dB bandwidth simultaneously was excited under 224mW pump power. Power fluctuation of lasing channels was less than 0.182dB and wavelength shift was less than 0.04nm in 100 minutes, after treating AFLF in a thermostatic icebath. Meanwhile, output laser was highly polarized with degree of polarization (DOP) up to 99.9%.