The need for data transmission systems that are high-speed, secure, and reliable increases as wireless communication technologies continue to advance rapidly. Light fidelity (LiFi) can meet this need through its several advantages, including high transmission rates, low electromagnetic interference, and indoor localization capabilities. This study proposes a hybrid LiFi transceiver, which utilizes LiFi technology using orthogonal space–time block coding (OSTBC), based on the spatial multiplexing (SM) and transmit diversity (Tx). The suggested hybrid LiFi transceiver aims to integrate the advantages of OSTBC, Tx diversity, and SM techniques to enhance the performance of the overall transceiver. The suggested transceiver plan to implement one of the diversity techniques, which are either Tx diversity or SM at a time. The selected technique will depends on the channel quality, optimizing the transceiver's throughput and ensuring effective utilization of the available spectrum. Through simulation results, this research aims to demonstrate that the proposed hybrid LiFi transceiver surpasses conventional LiFi transceivers that lack Tx diversity or SM. Anticipated outcomes of this research include superior data rates, enhanced reliability, and increased resilience against real channel impairments. These findings hold substantial promise for applications that requires high-speed and reliable communication, including smart homes, the Internet of Things, and forthcoming 5 G/6 G communication networks.