Signal propagation in nonlinear optical fiber is analyzed numerically by using SS-FEM (Split-Step Finite Element Method). By adopting cubic element function in FEM, soliton equation of which exact solution was well known, has been solved. Also, accuracy of numerical results and computing times are compared with those of Fourier method, and we have found that solution obtained from using FEM was very relatively accurate. Especially, to reduce CPU time in matrix computation in each step, the matrix imposed by the boundary condition is approximated as a sparse matrix. As a result, computation time was shortened even with the same or better accuracy when compared to those of the conventional FEM and Fourier method.