Simulations and prototyping have been a very important part of the electronics industry since a very long time. In recent years, FPGA’s have become increasingly important and have found their way into all kind of digital system design This paper presents a novel, easy and efficient approach of implementation and verification of VHDL code using Simulink and then to regenerate the optimized VHDL code again using Simulink. The VHDL code written for the complicated digital design of 32-bit floating point arithmetic unit has been synthesized on Xilinx, verified and simulated on Simulink.