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We propose the use of pulse shaping for mitigating the effect of channel distortion on the performance of indoor wireless infrared (IR) CDMA systems. The bit error rate (BER) performance of an on-off keying (OOK)-CDMA system as a function of the average transmitted power is investigated. To this end, a photon-counting model is utilized and major noise such as shot noise, ambient light, dark current, and receiver thermal noise are taken into consideration. It is shown that by using appropriate pulse shapes, the system performance can be improved and the required transmitter power can be reduced.