This paper uses semiconductor laser with 905nm wave length as light source to design a set of short-distance atmospheric laser communication system. This system consists of laser light source, launch modulation circuit, detector, receiving and amplifying circuit and so on. First, this paper analyzes the factors which lead to the decrease of luminous power of laser communication link under the applicable environment-specific sea level, then this paper elicits the relationship of luminous power of receiving optical systems and distance, slant angle and divergence angle which departures from the laser beam axis by using gaussian beam geometric attenuation mode. Based on the two reasons that PPM modulation theory limits the transmission rate of PPM modulation, that is, this paper makes an analysis on repetition frequency and pulse width of laser, makes theoretical calculation for typical parameters of semiconductor laser and gets the repetition frequency which is 10KHz, pulse width is50ns, the transmission rate is 71.66 Kb/s, at this time, modulation digit is 9; then this paper selects frame synchronization code of PPM modulation and provides implementation method for test; lastly, programs language based on Verilog, uses the FPGA development board to realize PPM modulation code and does simulation test and hardware test. This paper uses APD as the detector of receiving and amplifying circuit. Then this paper designs optical receiving circuit such as amplifying circuit, analog-digital conversion circuit based on the characteristics of receipt.