This project intended to design and develop a MIMO system which will be equipped with 2 transmit and two receive antennas. The idea was to exploit the space time diversity to obtain better quality of service and lower bit error rates. Ordinary space time block codes require channel states information to properly decode the received signals. However, differential STBC alleviate this problem, thereby reducing the receiver’s complexity. This project was a substantial step in the way of removal of one of the many challenges that wireless communications face now a days.