Abstract: Differential spatial modulation (differential spatial modulation, DSM) algorithm is a multi-antenna technology. The differential spatial modulation algorithm based on set partition strategy is studied in this paper. The algorithm skillfully embeds the same redundant codes in each set of bits symbols of the same information block, thus realizing the effect of set partitioning, which not only retains the advantage of improving the transmission rate, but also enhances the coding gain significantly by enhancing the correlation between all transmission modulation in the same information block. By further designing the antenna activation matrix, the performance of the system is optimized when only two transmitting antennas are used. Simulation results show that compared with the traditional DSM system, the proposed algorithm shows a lower bit error rate under the same spectral efficiency.