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. The never-ending demand for such personal and multimedia services, however, demands technologies operating at higher data rates and broader bandwidths. In addition, the complexity of wireless communication and signal processing systems has grown considerably during the past decade. Therefore, powerful computer­aided techniques are required for the process of modeling, designing, analyzing and evaluating the performance of digital wireless communication systems. In this paper we discuss the basic propagation mechanisms affecting the performance of wireless communication systems, and present a simple, powerful and efficient way to simulate digital wireless communication systems using Matlab. The simulated results are compared with the theoretical analysis to validate the simulator. The simulator is useful in evaluating the performance of wireless multimedia services and the associated signal processing structures and algorithms for current and next generation wireless mobile communication systems.