For DSP application that requires a large dynamic range floating point implementations are more suitable than fixed point representation. Floating point arithmetic is much useful in the implementation of various DSP applications as it allows the designer and the user to concentrate on the algorithms and architecture without worrying about the numerical issues. Many applications use floating point hardware to perform DSP tasks in real time and hence overcome the limitations imposed by the use of fixed point numeric systems. The multi-functional floating-point unit includes a multiplier unit, a fused Add-Subtract unit which uses hardware more efficiently in comparison to the separate unit blocks for each operation. This method reduces the area of the designed block but the speed of operation is also reduced. The blocks are reduced based on the common operation between each designed unit.