In this paper, the authors deal with the implementation of a ALU processor with GCD using Xilinx ISE 9.1i and Spartan 3 FPGA kit. The GCD processor has been implemented using Euclid's algorithm. ALU performs arithmetic operations and logical operations. Code is dumped on FPGA kit and output is analyzed. The select line is used to decide the whether which operation to perform either GCD or ALU. The paper also involves the simulation of the work on Xilinx ISE 9.1i. The implemented program was simulated and output waveforms were observed.