Future wireless communication system have to be designed to integrate features such as high data rates, high quality of service and multimedia in the existing communication framework. Increased demand in wireless communication system has led to demand for higher network capacity and performance. Higher bandwidth, optimized modulation offer practically limited potential to increase the spectral efficiency. Hence MIMO systems utilizes space multiplex by using array of antenna’s for enhancing the efficiency at particular utilized bandwidth. MIMO use multiple inputs multiple outputs from single channel. These systems defined by spectral diversity and spatial multiplexing. The aim of this paper is to design and implement of channel estimation method and modulation technique for MIMO system. The design specifications are obtained using MATLAB. The RTL coding is carried for the design to be implemented on Xilinx FPGA.