Abstract: In this paper, the impact of spatial fading correlation on Multiple-Input Multiple-Output Spatial Multiplexing (MIMO-SM) systems is investigated, where antenna selection and soft canceller with iterative decoding is considered. It turns out that the number of receive antennas to be selected at the receiver plays an important part when dealing with high antennas correlation in flat fading channel. To mitigate the effects of highly spatial correlation at the transmitter while hardware costs and computational burden are tolerable, the variable receive antennas is selected to obtain different receiver diversity. It will be shown via simulation that in some cases this adaptive antenna selection scheme with two transmit antennas and four receive antennas offers better frame error rate performance than the simple row Correlation-Based Method (CBM).