This paper will describe the signal processing and channel enhancement using MIMO technology In order to have flexibility in transmission system, wireless systems are always considered better as compared to wired channel. Having known the drawbacks of the Single Input Single Output system, and having computed the advantages of Multiple Input Multiple Out, several techniques have been developed to implement space multiplexed codes. In wireless MIMO the transmitting end as well as the receiving end is equipped with multiple antenna elements, as such MIMO can be viewed as an extension of the very popular ‘smart antennas’. In MIMO though the transmit antennas and receive antennas are jointly combined in such a way that the quality (Bit Error Rate) or the rate (Bit/Sec) of the communication is improved. At the system level, careful design of MIMO signal processing and coding algorithms can help increase dramatically capacity and coverage.