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Using multiple antennas at the transmitter and receiver has shown a remarkable scope for capacity increase for indoor wireless mobile and PAN communications and is here extended to on-body channels. The capacity and multiple-input multiple-output (MIMO) channel correlation analysis has been performed at 2.45 GHz frequency using planar inverted-F antennas (PIFA) for three on-body channels. The improvement offered by 2 ?? 2 MIMO over the conventional single-input single-output link for the on-body channels has been discussed. The variation of capacity with Rician K-factor is shown and the MIMO channel spatial correlation matrices are presented. The effect of correlation on the channel capacity is discussed.