Abstract-To meet the requirements of wireless communication industry Software-Defined Radio (SDR) provides an efficient, re-configurable and high performance platform to integrate all individual functions for various modulation and demodulation techniques. The key design step is to determine the digital hardware components of a software radio. This system consists of the BPSK Modulated Radio transmitter and receiver using Linux based GNU radio system. This work presents how the GNU Radio Companion (GRC) and USRP have been used to transmit/receive signals for a wide range of frequencies. The main advantage of this project is that we can implement any transmitter or receiver system without changing the hardware. We have to just change the parameters of software blocks [2] and the low bit error rate.