In this paper the development of a Virtual Remote Electronic Laboratory and its implementation using National Instrument's LabVIEW is discussed. The techniques presented in this paper are general purpose and can be used to develop any laboratory that requires simulation, hands-on experience, and the ability to run the laboratory over a network of computers. As a case study a digital signal processing course taught in the Department of Electronic Engineering at Sir Syed University of Engineering and Technology is selected. The practical implementation of this laboratory using LabVIEW is also discussed in this paper. The main advantage of this laboratory is that the students can perform the experiments of different subjects remotely through the Internet. Engineering education has always been dynamically interrelated with technology change. Educators and researchers worldwide are using National Instrument's products to automate routine tasks, accomplish new objectives, replace outdated and expensive equipment, and demonstrate students the potential of high technology. Physical systems are modeled and manipulated in software, and realized in hardware to demonstrate what differences may occur with real-life applications. By solving problems using software-based virtual instruments and actual hardware, students gain an appreciation of the interaction of process instrumentation and computers.