Abstract-The proposed design of HDB3 decoding system using FPGA implementation offers an efficient and unfailing decoding at receiving end by sustaining clock data recovery using Direct Digital Synthesis (DDS). The system captures E1/T1 HDB3 encoded tertiary level stream at input, converts it into binary level symbols, FPGA IO reconcilable, and decode and transforms it into synchronized NRZ output. The receiver end of FPGA based HDB3 decoding system has never been implemented using clock data recovery. The resource efficient implementation and synthesis outcome illustrate that the design of HDB3 decoder is very simple and fault tolerant and its ASIC design can easily be surrogate by the proposed idea.Index Terms-AMI, clock data recovery, decoder, direct digital synthesis, E1, FPGA, HDB3, NRZ, T1