A construction of new code family for Spectral Amplitude Coding Optical Code Division Multiple Accesses (SAC-OCDMA) has been proposed. This new code family we call it Dynamic Cyclic Shift (DCS) code. The DCS code reduced the effect of Multi Access Interference (MAI) due to it is the property of variable cross correlation. We find that the performance of the DCS code is a batter than Random Diagonal (RD) code and Modified Frequency Hopping (MFH) code. Through the mathematical calculation and simulation analysis, for the bit-error rate of DCS code is significantly better than other SAC-OCDMA codes such as RD and MFH codes. We analyze the performance of the proposed codes and examine how the code size and correlation properties are related. Two different decoding schemes are used for implementing the SAC-OCDMA system: Fiber Brag Grating (FBG) and optical Butterworth filter such as Arrayed Wave Guide Grating (AWG) optical filter. Simulation results show that performance of AWG filter is better than Fiber Brag Grating for optical system with 10 Gbps bit rates. Finally, in terms of system cost, FBG offers cost effective than other type of filters (e.g., AWG, thin film filter) © 2011 IEEE.