This paper presents HDL implementation of Kalman Filter. Kalman Filter is a mathematical tool, which uses sequence of noisy measurement taken over time to predict unknown state vector parameter. In this paper implementation in HDL has been done using new method that is chebyshev inversion method. The approach of new method is for reducing hardware and complexity. Kalman Filter has very complex matrix calculation and matrix inversion. To perform matrix inversion in HDL (Hardware Description Language) using less hardware is difficult. Chebyshev method is less complex so hardware can reduced for calculation of Kalman Filter equations Here simulation is done in FPGA (Field Programmable Gate Array) Vertex-6.