Virtual Instrument has become an important direction of instrument development, now it has been widely used in many fields. FFT analysis is a widely used method in mechanical engineering, fault detection and many other fields. However, the traditional FFT analyzer is expensive and is not easy to upgraded. The birth of virtual FFT Spectrum Analyzer gets rid of the limit of traditional FFT analyzer, and paves the way for the application of FFT analyzer. The uses of DSP technology make the future broadened of Virtual Instrument. This article ,based on the deep study of DSP system, designs a virtual FFT Spectrum analyzer based on DSP technology. The design is new and of great practicality, which indicates the important role of Virtual Instrument in the development of instruments.