Wireless communication is the transfer of information over a distance without the use of electrical conductors or wires. For transmitting a signal or information through a channel, it is necessary to modulate this signal or information by using a carrier signal. This procedure is called modulation. Digital modulation methods can be considered as digital-to-analog conversion and the corresponding demodulation or detection as analog-to-digital conversion. The changes in the carrier signal are chosen from a finite number of M alternative symbols (the modulation alphabet). In our work, we have analyzed MPSK and MQAM digital modulation schemes using gray mapping codes for M= 2, 4, 8, 16. We have also analyzed bit error rate as well as symbol error rate for PSK and QAM. We have compared BER vs. SNR for MPSK and MQAM in my project. We have also compared constellation diagram between the MPSK and MQAM where M= 2, 4, 8, 16. We have found different reasons for using different modulation schemes.