Abstract: Multiple antenna wireless systems can provide larger channel capacity and better ability to combat fading. The capacity can be further increased by feeding back some channel state information to the transmitter and implementing antenna subset selection. A fast and dynamic transmit antenna subset selection algorithm is proposed in this paper. Instead of the optimal selection algorithm, which needs to compute the capacity of all the antenna subset combinations, the new algorithm has almost the same capacity with lower complexity. It also has larger capacity than the existent static algorithms. Based on bit interleaved code modulation (BICM) technology, space time adaptive bit interleaved code modulation (ST-ABICM) scheme is constructed by adapting data rate per transmit antenna. Simulation results also prove the excellent performance of the scheme.