Pulley alignment apparatus for aligning pulleys when the operating position of a variable sheave pulley of a pulley system has changed is provided. The pulley alignment apparatus has an adjustable laser light unit that can be adjusted to compensate for the resulting displacement of the centerline of the variable sheave pulley when the operating position is changed. The pulley alignment apparatus also has a set of gauges for determining the operating position of a variable sheave pulley and determining if a belt is adequate for the variable sheave pulley at the operating position.