The AN/DKW-3B(V)2 transponder contains an FM command receiver, digital decoder/encoder, pulse modulated telemetry transmitter, and drone interface circuits necessary to control the majority of Navy drones. The transponder is compatible with the BQM-74, BQM-34, and QF-4 aerial targets. Target control is obtained by telemetry from the Integrated Target Control System (ITCS) ground stations. The ITCS station transmits discrete and /or proportional commands which are received by the AN/DKW-3B transponder. The transponder verifies address, control request, parity and bit coding before transferring commands to the drone. Telemetry transmission is initiated to the ground station after address verification. AN/DKW-3B command outputs are made TTL compatible by measuring the turnaround delay time. Telemetry inputs of 0-5 volts analog and 0-100 volts digital are available. A serial input/output interface to the target vehicle is also available. Improved design in the receiver, encoder/decoder, and transmitter sections using advanced solid state devices results in high reliability and long life.