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A novel compact wideband planar diversity antenna for mobile terminals is proposed. It has a -10 dB impedance bandwidth from 1.904-2.504 GHz including UMTS (1.920-2.170 GHz) and 2.4 GHz WLAN (2.400-2.484 GHz) bands. The mutual coupling of the diversity antenna is below -15 dB in the whole band (about -20 dB in most of the band). The diversity performance is also evaluated by calculating the correlation coefficient and the diversity gain. The user's hand effects on both the bandwidth and the mutual coupling have been analyzed by simulation with a simple hand model and measurement.