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This paper presents the simulation and performance analyses of WiMAX (Worldwide Interoperability for Microwave Access) system along with transmit antenna diversity technique using Alamouti coding scheme. Traditionally the design of wireless systems has been focused on increasing the reliability of the air interface where fading and interference are viewed as nuisances. Recent focus is now on spectral efficiency, associated with this shift is a new point of view that fading can be viewed as an opportunity to be exploited. In the initial stages, the single antenna system was used at transmitter and receiver in both the sides (SISO system) anticipating lower spectral efficiency and lesser capacity. It can be seen that root cause of the poor performance of these technique is that reliable communication depends on the strength of the single signal path only which may be in a deep fade under certain circumstances. A natural solution is to ensure that the information symbols pass through multiple signal paths, each of which fades independently, making sure that reliable communication is possible as long as one of the paths is strong. This technique is called diversity. The main objective of this paper is to achieve the greater reduction in bit error rate in 4G wireless system using antenna diversity principles along with efficient wireless channels. The quality based simulation models are developed for WiMAX system using antenna diversity technique and real time image input. The simulation results are presented along with the comparative analysis for several test cases.