Wireless communication is a key component in engineering. We see wireless communication in our daily lives such as using cellular phones and listening to radio station in your car. In wireless communication, it is very important that you receive reliable amount of transmitted signal in order to recover the original signal at the receiver side. It is very challenging area because there are always uncertainties in real life such as thermal noise and interferences between signals. Among various techniques to overcome these obstacles, channel diversity (using multiple antennas at the transmitter side or receiver side or both) is becoming the key idea. In this research project, I will develop a communication system using multiple antennas and try to improve the performance of communication system by using multiple antennas. This will be done with using USRP (Universal Software Radio Peripheral) product with software called GNU radio. GNU radio is open-source software which can be run in Unix/Linux environment. Data will be collected with using these tools and collected data will be processed by using Matlab.