Integrating a power amplifier with the rest of a transceiver poses unique challenges particularly at 5.8GHz, where parasitic couplings are inevitable. This paper proposed a system and circuit techniques that are necessary in order to realize a RFIC transceiver with an integrated power amplifier. These techniques were utilized to make a 5.8GHz GFSK transceiver with an integrated and highly efficient power amplifier in 0.18mum SiGe BiCMOS technology. The complete transceiver exhibit an output power of 21 dBm with no stability problem and power added efficiency better than 30%