Abstract: A novel octagonal photonic crystal fiber (PCF) was designed using an elliptical air hole and large circular air hole in the core region in order to enhance the performance of modal nonlinearity, birefringence and to get the low confinement loss at the same time. Its effective mode area, nonlinearity, birefringence and confinement loss were investigated simultaneously by using finite element method(FEM) with anisotropic perfectly matched layers. The numerical simulation results show that by choosing suitable relative structure parameters that the proposed fiber has high birefringence up to the order of 1.6810-2 at wavelength 1.55 m, it is about two orders of magnitude higher than that of the regular polarization maintaining fiber. High nonlinearity =60 W-1km-1, and low confinement loss 0.6 dB/km at wavelength 1.55 m. This highly birefringence PCFs with high nonlinear coefficient have received growing attention in telecommunication, various polarization sensitive devices and supercontinuum applications systems.