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A new postdetection diversity scheme for the differential phase detection of faded DPSK signals is proposed. It combines the detector outputs in proportion to the squared value of each branch signal envelope. The average BER of pi /4-shift quaternary differential phase shift keying (QDPSK) with two-branch diversity is obtained through computer simulations assuming Rayleigh fading. It is found that the proposed diversity is superior to selection diversity by approximately 1.5 dB.