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This paper proposes a simple and efficient simulation method for MIMO-OFDM system with channel equalization. BPSK modulation is used to detect the behavior of the Rayleigh fading channel in presence of additive white Gaussian noise and then its performance is evaluated. Obtained result is then compared with adding MLSE equalizer. This paper shows that the addition of equalizer reduces the BER (Bit Error Rate) and the channel output becomes more pronounced. Though the total channel is a frequency selective channel, the channel experienced by each subcarrier in an OFDM system is a flat fading channel with each subcarrier getting independent Rayleigh fading.