AbstractThe present work reports a novel single‐channel high‐speed inter‐satellite optical wireless communication (IsOWC) transmission link by using a 3‐D spectrum‐efficient orthogonal modulation scheme incorporating hybrid non‐return‐to‐zero‐differential quadrature phase shift keying‐polarization shift keying schemes. Three independent 40 Gbps information signals are parallel transported by modulating over distinct optical signal properties viz. amplitude, phase, and polarization of a single wavelength laser. The performance of the proposed system has been investigated by evaluating bit error rate (BER) performance of the IsOWC link vs link distance as performance metrics. Also, the link performance is numerically investigated in the presence of pointing errors. We numerically demonstrate a faithful 120 Gbps transmission at 26 000 km IsOWC link length. Further, the results report a reliable transmission up to 3.5 urad pointing error angle with acceptable BER performance of the link.