Er-Yb co-doped polymer waveguide active material is prepared. The three β-diketonate complexes of erbium and ytterbium ［Er1/2Yb1/2(HFA)3(TPPO)2］ is synthesized and doped in PMMA. At the 980 nm pumping light excitation, the full width at half maximum of the complexes′ fluorescence in the 1535 nm is 80 nm. The absorption and photoluminescence spectra of the active material are observed. Fundamental rate equations and power propagation equations used to simulate the gain factors of the active material excited at pumping light wavelength 980 nm. The influence on the performance of Er-Yb co-doped polymer waveguide amplifier with Er3+ concentration, overlapping factor of the signal laser and pumping laser, and signal emission cross-sections is theoretically calculated. The result of the calculations indicates that when the concentration of Er3+ is 0.3×1020 cm-3 in the active material, the calculated gain is 1.87 dB on a 2cm long waveguide.