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Point-to-point microwave system is the backbone link for mobile communication. In tropical region, rain attenuation is the major constraint for implementing microwave system above 10 GHz. The extreme of propagation channel environment due to rain was brought to the research and development of adaptive transmit power control (ATPC) in microwave transceiver. ATPC varies the transmit power level in order to maintain the receive signal level (RSL) above the threshold for bit-error-rate (BER) desired. This paper discussed the design and performance analysis of ATPC in simulation and experiments. Simulation is performed for analyzing the effect of ATPC to the transceiver non-linearity performance. ATPC subsystem is developed and tested in an experimental link with real-time rain faded signal.