Lives of MS1 and MS2 are 10 years, they are first high orbit navigation satellites of China. In order to improve orbit accuracy and realize the precise positioning of satellites, the two satellites were equipped with laser retro-reflectors. For the optical design of laser retro-reflector, the far-field diffraction of physical and optical properties should be considered besides the design theory of geometrical optics. Taking the test satellite reflector as an example, based on the corner reflector optical far field diffraction energy distribution theory, the reflector size was optimized by using the maximum radar cross section method, the laser retro-reflector aberration was compensated by the angle compensation method, the optical parameters, such as the reflector surface machining accuracy, surface reflection characteristics, cutting mode were optimizated and analyzed, and environment adaptability problems, for example, the high level mechanical environment, 330 ℃ high temperature, alternating 10 years life space radiation, were solved through the rational design of the mechanical structure and materials. Optical test results show that the parameters are reasonable, can realize the far field energy maximization in predetermined observation area, at the same time, observation data on orbit shows that the reflector works properly, ranging accuracy, range of indicators meet the expected design and the theory is in according with practice, this provideds certain reference and guiding for the design of similar laser reflector in the future.