A novel compact microstrip diplexer for UMTS and WCDMA system is proposed in this letter. The diplexer is mainly composed of three dual-mode stub-loaded microstrip resonators. Two resonant modes of a stub-loaded resonator work together with one mode produced by the common stub-loaded resonator to form a passband or operating band of the proposed diplexer. Extensive study is then conducted on coupling scheme involved in various parts of the diplexer. In particular, the resonance of a resonator is employed to create a desired transmission zero in the stopband, thus improving the isolation between two passbands. The proposed diplexer is in final fabricated and measured. A good agreement between EM simulated and measured results evidently validates the proposed methodology.