The dimensions of input waveguide and output waveguide of arrayed waveguide gratings (AWGs) determine the crosstalk, insertion loss and 1-dB bandwidth. In cascaded optical add/drop multiplexers (OADMs), the value of these parameters will largely affect the power penalty of system. The power penalty of cascaded OADMs is calculated with different waveguide dimensions of AWGs in this paper. Considering of wavelength misalignment, an optimization design of AWGs is obtained.