This paper presents a real-Time application of the 16-bit fixed point Digital Signal Processors (DSPs), in the Muon System of the D0 detector located at the Fermilab Tevatron, presently the world's highest-energy hadron collider. As part of the Upgrade for a run beginning in the year 2000, the system is required to process data at an input event rate of 10 KHz without incurring significant deadtime in readout. The ADSP21csp01 processor has high I/O bandwidth, single cycle instruction execution and fast task switching support to provide efficient multisignal processing. The processor's internal memory consists of 4 K words of Program Memory and 4 K words of Data Memory. In addition there is an external memory of 32 K words for general event buffering and 16 K words of Dual Port Memory for input data queuing. This DSP fulfills the requirement of the Muon subdetector systems for data readout. All error handling, buffering, formatting and transferring of the data to the various trigger levels of the data acquisition system is done in software. The algorithms developed for the system complete these tasks in about 20 microseconds.