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Digital Enhanced Cordless Telecommunication (DECT) can be a latent solution for wireless local loop (WLL) based communication system planning. In this paper, the design and simulation of a 8Ã8 planar microstrip antenna array and signal processing techniques of smart antenna systems for DECT radio base stations are presented. MUltiple SIgnal Classification (MUSIC) and Least Mean Square (LMS) signal processing algorithm techniques are analyzed and simulated for smart antenna system. Simulation results of the radiation characteristics, gain and return loss of the fixed beam planar array antenna have been produced by EM simulation software Zeland IE3D. Signal processing simulations were run in MATLAB. This smart antenna system is designed and simulated for DECT system in 1.88-1.90GHz frequency band.