This paper proposes the development of advanced audio recording techniques for airborne fighter aircrafts as many fighters are currently using audio tape recorders which are causing lots of inconvenience for the storage and analysis. This paper provides guidelines for the design and development of electronic system for defence applications. Currently verities of electronics devices are commercially available with modern technologies but not mature for defence application, because it required rigorous qualification testing to work under specified MIL conditions. This paper proposes an advanced Hardware and software designs with Mpeg 1 layer III audio coding and compression for defence applications by replacing tape recorder. This paper provides an in depth theory behind hardware requirement and the MPEG-1 Layer III standard, which is useful for implementation of a Digital Audio Recorder. The authors have developed and simulated the proposed concept using Matlab and found the audio quality satisfactory for airborne application