Due to the higher data transmission networks and maximum efficiency, multiple-input-multiple-output orthogonal frequency division multiplexing (MIMO-OFDM) has become most vital wireless communications system in nowadays. Accurate estimation of channel under severe time and frequency selective fading channels has been required by these MIMO-OFDM systems for enabling high practical mobility. Established methods trust on nonrealistic estimations or result in impractical complexities. In this, we presented a new MIMO-OFDM channel estimation (CE) scheme for pilot length minimizing by designing novel pilot bits from the Hadamard matrices of Paley (HM-P) type I allows its orthogonal and diagonal constant matrix structures manipulations. Additionally, we also implemented a method which estimates the channel impulse response length to enamour existed number of multipath within the channel by stretching the length of pilot. Furthermore, our proposed channel estimation scheme modified to derive the initial fluctuation of channel and its Doppler rate, afterwards during the payload applied for tracking of MIMO channel using fast adaptive hybrid linear quadratic estimation (FAH-LQE) filter. Experimental analysis has done in MATLAB environment under Rayleigh distribution and achieved excellent channel estimation and channel tracking performances over the state-of-art channel estimation algorithms. Our proposed scheme also achieved lower diversity of transmitting bits by applying FAH-LQE filter and the superior estimation of channel under multipath conditions while increasing the number of pilot bits sent per transmitting antenna.