Phase shifters can adjust phases electronically and hence is very popular for phased array antenna applications where radiation angle can be scanned electronically avoiding bulky mechanical rotation arrangement. In this research a variable gain phase shifter was investigated, capable of controlling precisely both phase and gain simultaneously. The phase shifter was fabricated using 0.18um CMOS process and the measured results showed continuous phase shift of 3030 with 9-dB variable gain at 3.5 GHz. Based on the measured results, a modified phase shifter was proposed and designed which can achieve continuous phase rotation of 3600 with small 22.50 steps, a low RMS phase error of 20 providing high resolution, a very high conversion gain of 14.2 dB with dynamic gain control range of 20 dB. These performances will create a potential future for smart communication radar applications where both beamforming and nulling can be achieved.