The dimension of probe and the exciting parameters have an obvious influence on the result of pulsed eddy current (PEC) nondestructive testing, the capability of the PEC inspection system can be improved by optimizing these parameters. Based on the analysis of the principle of PEC, the PEC model is established by ANSYS finite element simulation software to analyze the influence of the variation of probe dimension on the eddy current decay law and that of the change of exciting frequency and duty cycle on the detecting sensitivity. The simulation results show that the attenuation of the eddy current slows down with the increase of exciting coil length, and the attenuation of the eddy current quickens with the increase of exciting coil width and highness. The influence of exciting frequency and duty cycle on the detecting sensitivity of defect has a relationship with the specimen thickness, the exciting frequency should be appropriately decreased and the duty cycle increased in inspecting thick specimen. Finally, the results of simulation are testified by experiment methods, the agreement between simulation and experiment shows the correctness of simulation.