Simulation step-size optimization based on an analytical step-size selection rule is extended to the waveform level simulation of polarized optical signal propagation through single mode optical fiber. Using local error bound obtained from a scalar simulation package, the prescribed global simulation accuracy can be satisfied in the simulation of propagation of optical signals through dispersion managed optical communication links. The developed simulation package based on the proposed step-size optimization method can significantly speed up the time-consuming simulations which are typical in the coherent optical fiber communication system design.