SummaryThe MIMO‐OFDM increases spectral efficiency without the use of channel state information (CSI). However, the bit error rate (BER) in the MIMO‐OFDM model increases dramatically due to the increase in nonlinear distortion in the power amplifier (PA). In this research, a novel pre‐coder integrated MIMO‐OFDM technology is designed for effective BER reduction, and its performance is analyzed. The discrete wavelet‐based OFDM system is one of the key ideas to present good orthogonal by emphasizing orthogonal wavelets. It helps to mitigate inter‐symbol interference (ISI) and noise within the channel by extending the bandwidth (BW) compared to conventional OFDM systems. But, DWT‐OFDM highly suffered due to downsampling, which degrades system efficiency. To overcome this, a redundant discrete wavelet transform (RDWT) is proposed in this article to enhance spectral efficiency. For modulation, 16‐bit quadrature amplitude modulation (QAM) is introduced in this work. In addition to this, a block bi‐diagonalization (BBD) pre‐coder technique is proposed to mitigate unwanted noise and interference in the MIMO‐OFDM system. The performance measures such as ergodic sum capacity, BER, throughput, average jitter noise power, mean square error (MSE), and power consumption are analyzed using the MATLAB platform. The proposed method obtains the ergodic sum capacity of 6.25 bps/Hz, a BER of 0.021, a throughput of 95.2%, MSE of −0.47, and a power consumption of 1.15 μW. The simulative results prove the efficacy of the proposed method.