This paper presents a simplified 16-bit CPU design and its implementation using digital integrated circuits developed with Verilog hardware description language, while emphasizing simulation through the EDA tool. This design puts more emphasis on the critical roles played by the data path and the control unit, executing key instructions including arithmetic operations such as addition, subtraction, bitwise logic, and conditional jumps. This structurally modular CPU is both functioning and stable in nature, allowing support for future enhancements and enhancements as well, thereby serving as an effective model towards an understanding of the principles of CPU design. The execution of these basic instructions puts the core of the CPU under test and reaffirms its proper operation in respect of the detailed instruction set, while its extensibility design confirms further improvement possibilities for future complex instructions as well as finite-state machine optimization for the control unit. The present work not only proves the possibility of creating a fully working CPU, using readily available bare minimum resources to implement a prototype, but is also a breakthrough in future research with CPU architecture. The obtained results will shed light on CPU functionality optimization and extension, being the ground for building more powerful and effective processors in the future.