Pulse width modulation (PWM) is widely used in different applications. PWM transforms the information in the amplitude of a bounded input signal into the pulse width output signal without suffering from quantization noise. The frequency of the output signal is usually constant. In this paper, the new PWM system with frequency changing (PWMFM) is described. In such PWMFM the pulse width and also the carrier frequency are changed. Therefore, two independent pieces of information can be simultaneously transmitted over one channel; hence PWM and frequency modulation (FM) are simultaneously used. But such system needs 2 demodulators, one for PWM and the second for FM. PWMFM can be used in the following applications: LED light intensity control via PWM and several LED block switching by FM PWMFM is highly useful in motor speed control applications by PWM and direction of rotation with FM. PWMFM can be used also in a class-D audio amplifier for power control, e.g. coarse by means of FM and fine by PWM. PWMFM can be used for the simultaneous transmission of two independent information between all, mutual combinations of analog and digital circuits. The analog and digital circuits for modulation and demodulation of PWMF signal are described and measuring results are presented in this work.