In this thesis we discuss the space-time block coding, a new paradigm for communicationrnover Rayleigh fading channels using multiple transmit antennas with out information ofrnthe channel at the transmitter. Data is encoded using a space-time block code and thernencoded data is split into nT transmit antennas. The received signal is linear superpositionrnof the nT transmitted signals perturbed by noise.rnPrevious work on space-time coding has been restricted on the idealistic case ofrnuncorrelated spatial fading. In practice, however, insufficient antenna spacing or lack ofrnscattering cause the individual antennas to be correlated. In the second part of this work,rnwe study the impact of spatial fading correlation on the diversity and coding gains.rnWe derive the exact pairwise error probability (PEP) for space-time coding over qusistaticrnRayleigh fading channels. We furthermore show that if a space-time code achievesrnfull diversity in the uncorrelated case, the diversity order achieved in the correlated casernis given by the product of rank of the transmit correlation matrix and the rank of receiverncorrelation matrix. Finally, we provide simulation results demonstrating the impact ofrntransmit spatial fading correlation on the performance of space-time block coding forrndifferent correlation values.