Point-to-point microwave radio is being increasingly deployed because of the rapid expansion of commercial wireless services. Providers of wireless services continue to demand systems with higher data rates and higher carrier frequencies. This paper presents the system design of a 23 GHz transceiver that has 2/spl times/2 Mbps data rate for point-to-point microwave link. The designed system is simulated using Advanced Design System (ADS) from Agilent's for performance measurement and analysis. The 23 GHz microwave radio system comprises a double conversion up-converter and down-converter. A total noise figure not exceeding 3 dB is obtained over the 22.994 - 23.554 GHz frequency range. The power transmitted is 25.4 dBm. The design of transceiver involves the proper selection and arrangement of microwave components to meet the European Telecommunications Standards Institute (ETSI) recommendations for point-to-point equipment in fixed radio systems operating at 23 GHz. As future work, a prototype of a 23 GHz transceiver will also be developed. Further improvement will be considered to enhance the transceiver performance.