Growth in technology has led to unprecedented demand for high speed architectures for complex signal processing applications. In 4G wireless communication systems, bandwidth is a precious commodity, and service providers are continuously met with the challenge of accommodating more users with in a limited allocated bandwidth. To increase data rate of wireless medium with higher performance, OFDM (orthogonal frequency division multiplexing) is used. Recently DWT (Discrete wavelet transforms) is adopted in place of FFT (Fast Fourier transform) for frequency translation. Modulation schemes such as 16-QAM, 32-QAM, 64-QAM and 128-QAM (Quadrature amplitude modulation) have been used in the developed OFDM system for both DWT and FFT based model. In this paper we propose a DWT-IDWT based OFDM transmitter and receiver that achieve better performance in terms SNR and BER for AWGN channel. It proves all the wavelet families better over the IFFT-FFT implementation. The OFDM model is developed using Simulink, various test cases have been considered to verify its performance. The DWTOFDM using Lifting Scheme architecture is implemented on FPGA optimizing hardware, speed & cost. The wavelet filter used for this is Daubechies (9, 7) with N=2. The RTL code is written in Verilog-HDL and simulated in Modelsim. The design is then synthesized in Xilinx and implemented on Virtex5 FPGA board and the results were validated using ChipScope.