This project is a Digital IC Tester and Identifier. First, talking of the hardware used, AVR microcontroller ATMega16 was used. There are 2 buttons namely test and identify. Clicking on identify, would diplay the particular IC number and clicking on test would display the working condition of the gates-OK or Faulty. A 16x2 lcd is used as display. Power can be supplied using the programmer from USB or from adapter via a DC jack. All these hardware are assembled on a PCB which was designed on a software named ExpressPCB. The code was written and compiled on AVR Studio.