The purpose of this study is to design DSP (Digital Signal Processor) based IFF (Identification of Friend and Foe) signal simulator. Design of hardware based signal generation scheme that corresponds to range, azimuth and altitude data which is defined for interrogation of platform and reply codes and user interface for scenario definition is suggested. Fundamental information of IFF system signals and platform-signal relationship are defined in this scope. Moreover; DSP resource assignments for such a signal generation and key parameters of application algorithm are given. Besides generated signal waves and characteristics are observed. Finally, general comparison with available systems is performed and success of developed solution is discussed.