Abstract: For use in a data processor comprising an instruction execution pipeline comprising N processing stages, a system and method of encoding constant operands is disclosed. The system comprises a constant generator unit that is capable of generating both short constant operands and long constant operands. The constant generator unit extracts the bits of a short constant operand from an instruction syllable and right justifies the bits in an output syllable. For long constant operands, the constant generator unit extracts K low order bits from an instruction syllable and T high order bits from an extension syllable. The right justified K low order bits and the T high order bits are combined to represent the long constant operand in one output syllable. In response to the status of op code bits located within a constant generation instruction, the constant generator unit enables and disables multiplexers to automatically generate the appropriate short or long constant operand.