Abstract Optical wireless technologies like Free Space Optics (FSO) have proven to be a perfect choice for 5G communication systems. FSO can offer low latency, high capacity, extensive connectivity, and high reliability at a low cost. However, the major limitation of FSO is its susceptibility to atmospheric turbulences, especially rain at high frequencies. In this paper, a rain efficient 10 Gbps 5G communication system using multibeam FSO and multilevel Differential Phase Shift Keying (M-ary DPSK) encoder is proposed. To evaluate the system performance at different rain intensities, the state-of-the-art Charbonneau channel model for rain attenuation has been used. The performance efficiency of the proposed system is evaluated in terms of quality factor (Q-factor), bit error rate (BER), optical signal-to-noise ratio (OSNR), and received power. The results convey that the proposed system can perform well up to 4.25 km, 3.24 km, and 2.55 km under below average, average, and above average rain conditions, respectively, with attenuation of 6.28 dB/km, 9.65 dB/km, and 19.27 dB/km, respectively. Moreover, the comparative analyses show that the proposed system performs better than the recent conventional systems in terms of bandwidth and power efficiency.