The wireless communication system has growing rapidly with new technologies nowadays. This is due to requirement of better communication performance. In order to increase the wireless channel capacity, the researchers has come out with new technology called MIMO system. Further improvement on the system performance is introduced in this project by implementing polarization diversity into wireless MIMO system. The electromagnetic field is design to be more focus in dedicated angle of multi-beam. This has been done by integrating beam-forming network to the system. The channel capacity of the system has been improved overall to 12 bit/s/Hz.