Microwave engineering involves predominantly circuit analysis and design of planar components and monolithic integrated circuits. This is the second part of a two-semester course (the first part is integrated to EL 573). The microwave circuit functions are introduced. The course starts with the concept of noise in microwave circuits and introduction of active RF components and microwave circuits. It follows with the stability study and impedance matching of a two port active network. The Smith chart, used for impedance match and stability analysis, and signal flow graph method, for network analysis, will be reviewed. These studies provide basis for the design of microwave amplifiers and oscillators, which will be exemplified and applied to microwave circuits. Practical microwave systems are discussed.