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Reed-Solomon codes are an important class of error correcting codes used in many applications related to communications and digital storage. The fundamental operations in Reed-Solomon encoding and decoding involve Galois field arithmetic. Computer simulation tool, MATLAB is used to create and run extensively the entire simulation model for performance evaluation. It is discovered that the performance of RS codes can be assess through the function of its block size, redundancy and code rate and it is observed using Bit-Error Rate (BER) performance curve. Because RS codes work at byte level, thus it is also apparent that RS codes can perform well against burst noise. The results show that code gain with high code rate is better than that of low code rate and it is found that RS coded QAM signal performs better than the coded D-PSK signal with the same modulation size.