This report details an experiment on Amplitude Modulation (AM) and demodulation, covering the theoretical foundations and practical implementation. The introduction explains AM modulation, its advantages, and disadvantages, followed by a discussion of the theoretical background, including the derivation of AM modulation equations and different types of AM, such as Double-Side-Band With Carrier (DSBWC), Double-Side-Band-Suppressed-Carrier (DSBSC), Single-Side-Band (SSB), and Vestigial Sideband (VSB). The report then delves into the concept of the modulating index, which determines the degree of modulation, and classifies AM modulation into perfect, under, and over-modulation. The methods section describes the experimental setup, including the use of an audio oscillator, balanced modulator, and oscilloscope to observe and analyze modulating and modulated signals. The results section presents observations of modulating signals at different amplitudes and frequencies, carrier signals, and modulated signals, along with variations in modulating signal parameters and their effects on the modulated signal. The report analyzes the relationship between the modulating signal and the modulated signal and the impact of varying modulation parameters, concluding with an analysis of the experiment's outcomes.