A method and system to perform shifting and rounding operations within a microprocessor, such as, for example, a digital signal processor, during execution of a single instruction are described. An instruction to shift and round data within a source register unit of a register file structure is received within a processing unit. The instruction includes a shifting bit value indicating the bit amount for a right shift operation and is subsequently executed to shift data within the source register unit to the right by an encoded bit value, calculated by subtracting a single bit from the shifting bit value contained within the instruction. A predetermined bit extension is further inserted within the vacated bit positions adjacent to the shifted data. Subsequently, an addition operation is performed on the shifted data and a unitary integer value is added to the shifted data to obtain resulting data. Finally, the resulting data is further shifted to the right by a single bit value and a predetermined bit extension is inserted within the vacated bit position to obtain the final rounded data results to be stored within a destination register unit.