Disclosed is a stringed instrument with embedded DSP modeling capabilities to model an acoustic stringed instrument. The stringed instrument has a body and a plurality of strings and each of the plurality of strings is respectively coupled to a pickup to detect a vibration signal for each string. An A/D converter converts the detected vibration signal of a string into a digital string vibration signal. A DSP is located within the body of the stringed instrument to process the digital string vibration signal and to implement an acoustic modeling system to process the digital string vibration signal in order to emulate a corresponding string tone of one of a plurality of selectable acoustic stringed instruments. Acoustic modeling includes acoustic string and body modeling, microphone placement modeling, and pick-sound modeling. The emulated acoustic digital tone signal is then converted to analog form for output to an amplification device.