Conceptualization aspects of a smart sediment particle (smart pebble) for monitoring of sediment transport in riverbeds have been documented previously [1]. However, this mixed signal approach was done only at a conceptual level and lacks complete implementation aspects such as limited PCB real estate, a miniaturized power source and adequately addressing the offset errors. A fully digital version with multiple strap-down MEMs, signal conditioning blocks, an 8-bit processor and a memory subsystem was designed and assembled within a less than 4 cm diameter sphere to allow data capture for up to 15 minutes. This compact subsystem allows exporting of output data, stored within the memory from nine sampled MEM sensors, into an offline-processing environment for further processing to generate essential motion information. Complex mathematical algorithms for axis conversion, etc, are housed within the offline-processing environment reducing the burden on the smart pebble. The total electronic subsystem embedded within the pebble together with the external processing algorithms tackle cumulative errors, gravitational compensation requirements and offset errors, while being powered by a specially designed power stage, based on a single alkaline cell.