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Research on smart antenna has been incorporated in the evolution path from TD-SCDMA to TD-LTE. To reduce the array size of the mono-polarized smart antenna in TD-SCDMA systems, dual-polarization scheme is considered to facilitate the application of smart antenna in TD-LTE systems. In this paper, we investigate the performance degradation due to dual-polarization for smart antenna in TD-LTE system. The beamforming gain and the diversity gain of the smart antennas with two polarization schemes are analyzed, and then followed the numerical simulation. Both the analysis and the simulation show that the dual-polarization scheme pays a little penalty of slight signal-to-noise (SNR) loss for the great decrease of array size that greatly facilitates the application of antenna array.