Due to the explosive demands for high speed wireless services, such as wireless Internet, email and cellular video conferencing, digital wireless communications has become one of the most exciting research topics in electrical and electronic engineering field. In addition, the complexity of wireless communication and signal processing systems has grown considerably during the past decade. Therefore, powerful computer-aided techniques are required for the process of modelling, designing, analyzing and evaluating the performance of digital wireless communication systems. In this paper we present a simple, powerful and efficient way in the simulation of digital wireless communication systems using Matlab. The paper also discusses the basic propagation mechanisms affecting the performance of wireless communication channels. We will also give hints and tips of how to implement these mechanisms in a simulator using Matlab, which can effectively be used for testing and analyzing the performance of different equalization receiver structures and evaluating their effectiveness in combating the destructive effects of the channel.