Embedded and analog system designers are introduced to the concept of intelligent sensor-signal processing, wherein Digital Signal Controllers (DSCs) with extensive DSP features and powerful on-chip signal-conversion and communication peripherals provide enhanced functionality and reliability, while reducing sensor and system cost. The benefits of using DSP algorithms in sensor-based systems will be discussed, such as the ability to extract and utilize the frequency-domain characteristics of sensor signals. Representative application case studies are presented to illustrate the above concepts.