Mainly consisted of simulating system, the present TACAN equipment is difficult to associate with the date equipment system and is necessary to make digital improvement. The digital technology of IF signal, which is on the basis of Software Radio, has been used broadly in the current communication field. The hardware system made up of FPGA and DSP is the implement platform of advanced digital signal processing technology used in the practical projects. First, the characteristics of TACAN signal are analyzed；Second, the IF signals are processed by using digital technology on the basis of a hardware system which is composed by FPGA and DSP. The result proves that this algorithm meets the performance demand of TACAN system. Compared with the conventional system, TACAN provides many benefits in the economization of power and space.