In this thesis, we present the impact of backscattering induced crosstalk on the Bit-error-rate (BER) performance of a corner cube retro-reflector (CCR) based distributed sensor network system which is based on optical wireless communication. A CCR, which consists of three flat glass plates, can send information back to the base transceiver. We study the BER for different transmitted optical powers. The photodiode at the global transceiver combines all the received signals and following that a decision circuitry makes a hard decision based on an adaptive decision threshold. It is observed that the BER decreases with the increment of the number of CCRs. This thesis also reveals that there is a power penalty suffered by the system due to the type of transceiver used in this system. The limiting values of the link range (horizontal distance between the global transceiver and the CCRs) and the imaging receiver pixel sensitivity factor are determined at a BER of 10-9. Mathematical results show that the power penalty increases for about 2 watts for a decrement in the pixel sensitivity factor of about 0.5. It is also found that the system will get an improved BER by increasing the number of CCR.