CDMA cellular networks support soft handover, which guarantees the continuity of wireless services and enhanced communication quality. Cellular networks performance depends upon Soft handover parameters. In this paper, we have shown the effect of soft handover parameters on the performance of CDMA cellular networks. We consider HYST_ ADD and HYST_ DROP as the Soft handover parameters. A very useful statistical measure for characterizing the performance of CDMA cellular system is the mean active set size and soft handover region. It is shown through numerical results that above parameters have decisive effect on mean active set size and soft handover region and hence on the overall performance of the soft handover algorithm.