A small satellite spread transponder simulator,which is capable to replace the true transponder to join the subsystem test or check the compatibility of ground station TT C (Telemetry Tracking Command) SCOE (Specific Check Out Equipment), has been developed.Technologies such as PXI bus, spread communication, software radio have been applied in the development process.It will be fast to update this simulator or convenient to provide a common platform for the new algorithm based on flexible architecture of PXI and modularization design. The modulation and demodulation function has been verified by communicating with the on-board equipment and ground test equipment.