Digital isolators are devices that connect one electrical system block to another over a galvanically isolating barrier. They allow electrical systems to communicate with each other even though they may operate at vastly different potentials. They also do the job of eliminating potentially damaging ground loops between the two systems. This thesis presents a digital isolator based on inductive coupling. It presents a better alternative to the traditional approach of using optocouplers. The design employs a transmitter and a receiver which communicates digital signals over an isolation barrier with emphasis on low power and high common-mode rejection. The design achieves a common-mode transient immunity of 100kV/us, a data rate of 50Mbps, power consumption of 2mA per channel and signal delay less than 15ns.