Abstract: The GPS (Global Positioning System) is a mature technique in the navigation and positioning. But there are some limits in special applications such as mines. The main draw back of the GPS use indoors are the low signal power, and the presence of multi-paths, which may affect the signal acquisition and tracking accuracy[5]. The performance of GPS needs to be improved with technological advances. As a GPS-like ground transmitter, the Pseudolite provides a new research direction to achieve high positioning accuracy and reliability[5]. Pseudolites (pseudo-satellites) are local transmitters on Earth that output GPS satellite signals in order for augment the GPS system for use in locations where satellite signals may be obstructed. One of the challenges related to indoor positioning is to find suitable statistical models of the indoor propagation that give further insight on multi-path behavior and fading distributions[5]. In this paper, we proposed the basic technology of designing and simulation on the coarse acquisition (C/A) codes in constructing the GPS/pseudolite Integration system. We have generated code PRN1 to PRN32 it indicate GPS signal and PRN33 of PL by using (Interace Control Document) ICD-GPS-200C Date sheet. To show multipath efects on generated signals we have Considered Channel noise asWhite Gaussian Noise and Rayleigh Noise, These noises are added to generated PRN codes with the help of Mat-Lab tool, and removed with by using Equal Gain combining algorith (EGC) at the time of Signal Acquisition. Finally we acquired C/A code with the help of Correlation. The obtained results was compared with previous research data to show multipath effects in Indoor channel. It is shown that the pseudolite technology is ideally suited to augment the GPS alone and provide greater integrity, availability, and continuity of the navigation positioning system, especially for indoor use[5].