A system and method is provided for making highly accurate data propagation delay measurements in a serializer/deserializer (SERDES) integrated circuit. The invention detects a selected special character when the special character is present at the input of a transmit data path of the SERDES integrated circuit. The invention also detects the special character when the special character appears at the output of the transmit data path. The invention then counts the number of clock cycles during which the selected character was in the transmit data path. This provides the data propagation delay of the special character through the transmit data path. The invention also makes data propagation delay measurements for a receive data path of a SERDES integrated circuit.