The purpose of this study is to propose a DDS-based FMCW signal generation and signal processing system which will improve linearity of FMCW radar. The proposed signal generation system is designed to sweep 9.8GHz~10.44GHz using DDS sweep from 50MHz to 210MHz for 6.4ms. The output power of the signal generating system is about 14dBm. The signal processing unit using 4096 FFT at 10KHz sample frequency is designed to detect the beat frequency. To measure the distance resolution of FMCW radar using the proposed signal generating system, we used delay line cables instead of antenna and circulator. Through experiment of delay line length variation, it is observed that the beat frequency increases linearly along with the length of delay line and the distance resolution of the radar is 3.6cm in a free space.