Abstract: By integrating the set segmentation strategy in differential spatial modulation (DSM), a multi-antenna technology, a differential spatial modulation algorithm based on the set partitioning strategy is proposed. This algorithm introduces redundant code design, redefines the symbol modulation rules at the DSM system's transmitter end, and implements set partitioning operations. This approach not only improves spectral efficiency but also significantly enhances coding gain by strengthening the correlation among all modulation symbols within the same information block. By further designing the antenna activation matrix, the system performance is optimized in the scenario where only two transmitting antennas are used. Simulation results show that the proposed algorithm, compared with the traditional DSM systems, exhibits a lower bit error rate under the same spectral efficiency.