Frequency Modulated Continuous Wave (FMCW) Radar is a radar system commonly used in industries to estimate the level of liquid in a tank. This systemis often used in automated tank systems where it is essential to have reliable estimates of the surface level of the liquid in the tank. The FMCW radar systemworks by continuously transmitting and receiving signals that are modulatedwith a specific waveform. The received signals are then analyzed to estimatethe distance to the surface of the liquids, which is used to determine the level of the liquid in the tank. This information is essential in an industrial environment in preventing overfilling or potential hazards. The goal of the thesis is to investigate a short-range (FMCW) radar prototypeof a terahertz band characterized by a high atmospheric attenuation and widebandwidth becomes of considerable interest in high-accuracy radar. The development of monolithic integrated circuit (MMIC) technology yields the applicationof a Silicon Radar Integrated Circuit (IC) with a front-end module TRA-120-045,baseboard, and a Breakout Board. The theoretical evaluation and assessment inmeasuring range for various parameters are discussed using some digital processing techniques, working at 120GHz as per Industrial, Scientific, and Medical(ISM) band. To further explore the evaluation kit following the initial assessment and thedata furnished by Silicon Radar. Proposed modifications in the design of the hornantenna and Plano-convex hyperbolic lens can significantly enhance the capabilities of the radar system by utilizing the bandwidth allocated and increasing theantenna's gain to 30 dB. These changes will ensure and address the current limitations, and improve user experience, which will give us a competitive advantage in industrial application .