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This paper presents a low power and low cost transceiver for 915 MHz-band IEEE 802.15.4 b standard. Low power and low cost design are considered by optimizing transceiver architecture and circuit topology. The proposed transceiver shares analog baseband for both receiver and transmitter saving a silicon area. The transceiver consumes 11.5 mA and 22.5 mA for receive and transmit mode from 1.8 V supply including 5 mA of VCO and frequency divider currents. The proposed transceiver is implemented in a 0.18 mum CMOS process and occupies 10 mm of silicon area.