To increase data rate of wireless medium with higher performance, OFDM (orthogonal frequency division multiplexing) is used. Here DWT (Discrete wavelet transforms) is adopted in place of FFT (Fast Fourier transform) for frequency translation. Modulation schemes such as 16-QAM (Quadrature amplitude modulation) have been used in the development of OFDM system using DWT. In this paper, I propose a DWT-IDWT based OFDM transmitter and receiver .It has been proven that all the wavelet families better over the IFFT-FFT implementation.. The wavelet filter used in the project is Bi-orthoganal (9,7) with N=2. The Project also include implementation of Digital Up Converter and Digital Down Converter at the transmitter and receiver part respectively. The project is implemented on FPGA by designing using Verilog HDL and System Generator.