The objective of this book is to develop the hardware and system software for a 16-bit processor. The design of the processor is based on the instruction set of the processor provided in the book titled "Digital Design and implementation in FPGA" by Dr. Navabi. An assembler using Turbo C as well as an instruction set simulator using MS Excel with VBA is developed and the design is targeted to an FPGA (Field Programmable Gate Array) board for design prototyping that involves testing of various input signals at the output ports. A typical Xilinx Spartan 3E board is used here.