In this thesis, two different cases of hybrid IEEE 802.15.4 PHY (Physical Layer) implementation are explored. The first case is an FPGA implementation of IEEE 802.15.4 PHY on the Xilinx Spartan-3A DSP FPGA of USRP N210. All of the signal processing tasks are performed on the FPGA, while less complex MAC (Media Access Control) layer tasks are performed in GNU Radio on the host. The second case is an implementation of a multi-channel IEEE 802.15.4 receiver. A four-channel channelizer is implemented on the external Virtex 5 FPGA, while the IEEE 802.15.4 receiver is implemented in GNU Radio on the host. The first case demonstrates how spare resources in USRP's FPGA can be used to implement signal processing task while still interfacing with GNU Radio. The second case builds a platform on which a combination of GNU Radio and an external FPGA can be used for signal processing and USRP as an RF source. This thesis lays out the groundwork for more complex wireless protocols to be implemented on any combination of USRP's FPGA, an external FPGA, and GNU Radio. / Master of Science