ARGO-M is a satellite laser ranging (SLR) system developed by the Korea Astronomy and Space Science Institute with the consideration of mobility and daytime and nighttime satellite observation. The ARGO-M optical system consists of 40 cm receiving telescope, 10 cm transmitting telescope, and detecting optics. For the development of ARGO-M optical system, the structural analysis was performed with regard to the optics and optomechanics design and the optical components. To ensure the optical performance, the quality was tested at the level of parts using the laser interferometer and ultra-high-precision measuring instruments. The assembly and alignment of ARGO-M optical system were conducted at an auto-collimation facility. As the transmission and reception are separated in the ARGO-M optical system, the pointing alignment between the transmitting telescope and receiving telescope is critical for precise target pointing. Thus, the alignment using the ground target and the radiant point observation of transmitting laser beam was carried out, and the lines of sight for the two telescopes were aligned within the required pointing precision. This paper describes the design, structural analysis, manufacture and assembly of parts, and entire process related with the alignment for the ARGO-M optical system.