Pulse Width Modulation (PWM) is a technique in which the width of a pulse is modulated keeping the time period of the wave constant. The ON time and OFF time can have any different values in the wave cycles, but the sum of the ON time and OFF time remains same for the entire cycles. PWM is a digital wave that can be generated using digital circuits which are not capable of generating analog voltages. With the help of the modulation of the width of a pulse in a period of the wave, they can generate any required voltage with the help of a proper filter circuits. The filter circuits are used for generating the voltage corresponding to a modulated wave. Hence the PWM wave is always associated with a filter circuit.This feature of the PWM wave is making use in so many digital systems like DC motor control, audio devices, simple decoration light controls etc. The PIC18F4550 has an inbuilt PWM module which can generate continuous PWM waves. This project explores the PWM module of the PIC18F4550 and tries generating a sine wave with the help of a filter circuit. Generating a sine wave has a great deal of importance since the sine wave is the most natural waveform and all other kind of waves can be generated as a combination of sine waves with different frequencies and amplitude.