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Due to rapid advancement in microwave communication technologies in telecommunication and broadcasting has resulted in congestion for frequencies below 10 GHz. This fact has forced to the utilization of higher frequencies extending the radio frequency spectrum into the millimeter wavelength region. This paper presents the system design of a 23 GHz transceiver for point-to-point microwave link. The designed system is simulated using Advanced Design System (ADS) for component specifications determination and performance measurement. The effect of rain attenuation to the system is analysed, as to determine the effectiveness of the system. 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.