Abstract: We have developed a compact new course on digital logic design and computer fundamentals, integrated with laboratory assignments using state-of-the-art design tools and a custom designed lab system board. The labs give the students hands-on experience with FPGA design using Xilinx Foundation and 8051 assembler programming. Through 5 assignments the students design, verify and demonstrate a simple audio processing system. Feedback from students tells that this makes the course fun and helps the understanding of the theory. In this paper we outline the objectives and contents of the course, give a brief description of the labs and summarise the experience from running this course for three years.