Code Division Multiple Access (CDMA) is a spread spectrum technique that uses neither frequency channels nor time slots. With CDMA, the narrow band message (typically digitized voice data) is multiplied by a large bandwidth signal that is a pseudo random noise code (PN code). All users in a CDMA system use the same frequency band and transmit simultaneously. The transmitted signal is recovered by correlating the received signal with the PN code used by the transmitter. The DS -CDMA is expected to be the major medium access technology in the future mobile systems owing to its potential capacity enhancement and the robustness against noise. The CDMA is uniquely featured by its spectrum-spreading randomization process employing a pseudo-noise (PN) sequence, thus is often called the spread spectrum multiple access (SSMA). As different CDMA users take different PN sequences, each CDMA receiver can discriminate and detect its own signal, by regarding the signals transmitted by other users as noise-like interferences. In this project direct sequence principle based CDMA transmitter and receiver is implemented in VHDL for FPGA. Modelsim 6.2(MXE) tool will be used for functional and logic verification at each block. The Xilinx synthesis technology (XST) of Xilinx ISE 9.2i tool will be used for synthesis of transmitter and receiver on FPGA Spartan 3E.