AbstractUsing a 2‐step partitioning of the signal constellation and Reed‐Muller component codes, we construct block‐coded modulation (BCM) schemes that achieve an asymptotic coding gain close to 6 dB. The component code associated to the first partitioning step is a distance‐4 or a distance‐8 Reed‐Muller code, and the code associated to the second partitioning step is a simple parity‐check code. We investigate BCM schemes with square signal constellations and a fractional number of information bits per symbol as well as BCM schemes with circular signal constellations and an integer number of information bits per symbol. We use multistage decoding with a Viterbi algorithm for the first component code using the trellis description given by Forney. Our results indicate that with short block lengdis, these BCM schemes compare favorably with trellis coded modulation (TCM) of similar complexity. Due to the rapid increase of the error coefficient, however, they lose their advantage as the block length increases.