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This paper studies the transmission characteristics of the microstrip line consisting of a YBCO high temperature superconducting material and investigates the effect of attenuation and distortion of the pulse propagating along such a transmission line. The effectiveness of high temperature superconducting material for interchip and intrachip interconnections is described. Presently, the high temperature superconducting thin film devices are often made on an MgO substrate that has rather high permittivity and a high dielectric loss. Calculation of the characteristics of the transmission line based on the two fluid model is used to demonstrate that the effect of the dielectric loss of the substrate becomes significant at the frequency range below 20 GHz; further, the attenuation constant increases by two orders of magnitude in comparison to the case without the loss caused by the substrate. However, the attenuation constant is smaller than that of the A1 interconnect at 77 K and the phase constant is almost constant independent of frequency so that this transmission line has excellent properties. The distorted wave is derived by simulation when a pulse is applied to this transmission line. It is demonstrated that the line of an MgO substrate at 77 K is superior as a transmission line. On the other hand, a YBCO microstrip line was fabricated on an MgO substrate. The attenuation and phase constants were measured and compared with the theoretical values.