An optical FM system using an optical FM LD (laser diode) and an optical frequency discriminator (OFD), in which a nonlinear compensation scheme based on the interaction between its nonlinearities can minimize intermodulation distortion. This paper theoretically investigates the minimization influence for 3rd plus 5th order intermodulation distortion power for an optical FM radio-on-fiber system. The carrier to noise-plus-distortion power ratio (CNDR) is theoretically analyzed in employing the OFD whose transmission characteristic is controlled by a phase shifter. The results show that the designed receiver can achieve higher CNDR in the application of multicarrier transmission.