An optical time-division multiplexing (OTDM) technique based on the Faraday rotator and three port circulator is designed. The polarizations of the optical pulse exported from the OTDM system are all the same, which have greatly increased the polarize stability. The effect of the adjusted errors on the intensity and time are analyzed with frequency spectrum. The results indicate that the power density varies only on the frequencies which are multiples of the basic frequency. A spectral analyzer is used to achieve a real-time measurement on the errors of intensity and time. The effective-number-of-bits of the five degree OTDM is 6.15 bit.