Abstract: The telemetry system used in the measurement while drilling (MWD) or logging while drilling (LWD) is essentially a digital communication system. The fact of the special and hostile drilling environment limits the use of many advanced techniques and equipment, and thus results in a low data transmission rate. While increasing the data rate for the MWD/LWD telemetry system becomes a primary focus, maintaining the system reliability and the decoding quality at a high data rate is equally challenging. This invention presents digital signal processing solutions to a high performance telemetry system with the high data rate, high system reliability, and high decoding quality.