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Orthogonal Frequency Division Multiplexing (OFDM) in combination with Multiple Input Multiple Output (MIMO) is a popular method for high data rate wireless transmission. The use of multiple antennas at both sides of the link offers an additional fundamental gain-spatial multiplexing gain, which results in increased spectral efficiency. This paper is concerned with the simulation, modeling and performance evaluation of Multiple Input Multiple Output Orthogonal Frequency Division Multiplexing (MIMO-OFDM) with improved performance. In this scheme OVSF codes have been used for image spreading before transmission as it solves the synchronization problem and minimizes the effect of unwanted noise during transmission. Rayleigh fading channel has been used in the proposed scheme. The performance of the proposed scheme has been tested on image signal and checked by waveforms and plots by calculating bit error rate and pixel error rate. Various digital modulation techniques have been used for checking the performance of the proposed scheme.