The architecture and implementation of a novel processor suitable wireless terminal applications, is introduced. The wireless terminal is based on the novel dual-mode baseband processor for DECT and GSM, which supports both heterodyne and direct conversion terminal architectures and is capable to undertake all baseband signal processing, and an innovative direct conversion low power modulator/demodulator for DECT and GSM. The state of the art design methodologies for embedded applications and innovative low-power design steps followed for a single chip solution. The performance of the implemented dual mode direct conversion wireless terminal was tested and measured for compliance to the standards. The developed innovative terminal fulfils all the requirements and specifications imposed by the DECT and GSM standards.