A compact architecture for real-time DoA estimation, tracking and beamforming is presented. It is based on the phased array concept. Beamforming is realized digitally. The system concept and architecture are described in full detail. A proof of concept prototype, including a 1×2 planar array, an analog front end, and an FPGA based embedded system, is built and measured. The system is controlled by a GUI running on a mainstream laptop. The architecture is tailored to the use of low cost, off-the-shelf, readily available components.