Demands for capacity in wireless communications, driven by cellular mobile, Internet and multimedia services have been rapidly increasing worldwide. On the other hand, the available radio spectrum is limited and the communication capacity needs cannot be met without a significant increase in communication spectral efficiency. Coding techniques designed for multiple antenna transmission are called space-time coding. Space-time coding can achieve transmit diversity and coding gain over spatially uncoded systems without sacrificing the bandwidth. Space-time trellis code (STTC) has been widely applied to coded multiple-input multiple-output (MIMO) systems because of its gains in coding and diversity. Diversity techniques are used to reduce the effect of fading. Space-time trellis code is a bandwidth and power efficient method of communication over Rayleigh fading that realizes the benefits of multiple transmit and receive antennas. In this paper we present analytical performance results for space–time trellis codes over spatially correlated Rayleigh fading channels. In this paper we analyze and compare the 8-PSK STTC over Rayleigh fading Channels for determining Performance.