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We proposed a novel design of photonic crystal fiber with the characteristics of high birefringence and zero dispersion. The structure of the photonic crystal fiber is composed of the rectangular lattice with double-cladding and there is an elliptical air hole in the core of the photonic crystal fiber which has the same size with the holes of inner ring. Simulation results show that the elliptical air hole in the core can enhance the performance of mode birefringence and control the properties of chromatic dispersion at the same time. We obtain the high birefringence B = 2.1 × 10 and B = 2.9 × 10 at the wavelength of 1.31 and 1.55 μm respectively and the zero dispersion point at the wavelength of 1.31 μm. The proposed photonic crystal fiber with high birefringence and zero dispersion will be important in the applications of polarization maintaining transmission systems. [ABSTRACT FROM AUTHOR]