Abstract: By modifying the traditional Direct Digital Synthesizer (DDS) design method, a novel solution without phase truncation error is introduced in this paper. It has reduced the storage requirement for the sine-wave samples, eliminated the storage limitation to the signal precision improvement, and avoided the infection which comes from the phase truncation error to the final signa1 spectrum; consequently, the DDS performance is meliorated. This method is applicable in carrier generation, frequency-offset modulation and some other communication signal processing area, and could be implemented on many hardware platforms such as FPGA, DSP and MCU.