As space technology continues to advance, the landscape of telecommunication is witnessing a transition from traditional radio frequency to laser communication technology, driven by its enhanced efficiency. Notably, laser communication offers the potential for achieving millimeter-level ranging accuracy, thanks to its significantly higher data rates. This thesis presents the design of a system utilizing a field-programmable gate array (FPGA) and commercial off-the-shelf (COTS) multi-gigabit optical transceivers. The system tests laser communication ranging through time-of-flight measurements, leveraging the inherent structure of optical data. Through extensive testing, the thesis aims to characterize the system's maximum achievable accuracy, identifying constraints in the avenues of improvement. The use of COTS components ensures scalability and facilitates seamless integration into future test setups. ... Read more