Inter-Satellite Optical Wireless Communication (Is-OWC) is a pivotal technology for advancing global connectivity and the effectiveness of space-based operations. It serves as the linchpin for various applications such as global internet coverage, Earth observation, and remote sensing, bolstering our capacity to monitor the planet and deliver essential services. This paper presents the design and performance evaluation of a Polarization Division Multiplexing (PDM) and Multiple Input Multiple Output (MIMO)-based Is-OWC system operating at a data rate of 60 Gbps. The system was tested under varying transmission distances, atmospheric turbulence, and pointing error conditions. At a transmission distance of 10,000 km, the system achieved a Bit Error Rate (BER) of 6.76 × 10⁻3 for Channel 1 (X polarization) and 7.1 × 10⁻3 for Channel 4 (Y polarization), both within Forward Error Correction (FEC) limits. The introduction of a 4 × 4 MIMO configuration extended the transmission range to 14,000 km, with a corresponding BER of 9.1 × 10⁻3 for Channel 1 and 8.7 × 10⁻⁵ for Channel 4. Eye diagrams confirm successful signal reception, demonstrating that the system can maintain high data rates and low error rates over long distances. The proposed PDM-MIMO system showcases high-capacity, robust performance under challenging conditions, such as turbulence and pointing errors, validating its suitability for space-based communication applications. These findings highlight the potential of the system for future deployments in satellite networks, offering reliable, high-throughput, and low-latency data transmission over extended distances.