System on-chip design in deep submicron technology interconnects plays an important role in overall performance of the chip. Digital circuits consists of a number of interconnected logic gates which together perform a logic operation with more input signals. When an input signal changes the change will propagates via the gates to the circuit generating energy transition The signal transition causes to charge or discharge the capacitive load of CMOS circuits will induces the power dissipation. Recently power dissipation is becoming an important constrain in a deep submicron VLSI technology. There are several methods for the reduction of dynamic power dissipation through energy transition in data buses. Among them the Novel Octo-coding method is most effective and powerful method for enhancing the behavior of on-chip data buses. This coding method is implemented and analyzed using Xilinx and Modelsim tools