Abstract-The capacity enhancement in Multi Carrier Code Division Multiple Access (MC-CDMA) technique with multiple antennas at both the transmitter and the receiver is achieved by restricting interference noise through power control method at transmitter. Due to time varying nature of the channel, channel fading is not identical to all sub carriers. So, the allocation of sub carriers to the users according to the instantaneous Channel State Information (CSI) is also improves the capacity of the MCCDMA system. In this paper, The maximization of capacity in MCCDMA-MIMO system is achieved through dynamic allocation of sub carriers to each user and power allocation using water filling game theory subject to the constrain of total power at transmitter. The water filling algorithm distributes power among all users with the help of SINR that is received by the transmitter instead of getting full CSI. The sub carrier group assignment is implemented by selecting best sub carriers with maximum Signal to Interference and Noise Ratio (SINR) value and user's rate requirements. The performances of capacity improvements and outage probability reduction in MCCDMA-MIMO are analyzed with various diversity sizes (SISO, 22, 44).