AC coupling using NMOS and PMOS involves connecting the drain of an NMOS transistor (M2) through a capacitor (C2) to a load resistor (R4) to establish a ground reference level. The circuit operates by mirroring current from M1 to M2, which has a positive voltage at its drain, necessitating AC coupling. The user successfully implemented AC coupling with NMOS but encountered discrepancies when attempting the same with PMOS, leading to different output waveforms. Despite achieving similar output voltages of 200mV peak-to-peak in both circuits, the user questioned why the PMOS waveform did not match the NMOS waveform. This discussion highlights the differences in behavior between NMOS and PMOS in AC coupling applications.