In this paper, utilizing high resolution quantization theory, we analyze the loss in average symbol error probability (SEP) for finite rate feedback MISO systems with rectangular M -QAM constellation. Assuming perfect channel estimation, no-feedback delay and error-less feedback, for spatially i.i.d and correlated channels we derive analytical expressions for loss in average SEP due to finite-rate channel quantization. We then consider the high-SNR regime and show that the loss associated with correlated case is related to the loss associated with the i.i.d case by a scaling constant given by the determinant of the correlation matrix. We also present simulation results in support of the analytical expressions.Index Terms: MISO systems, transmit beamforming, channel state information, feedback, M -QAM, channel quantization, spatial correlation1. INTRODUCTION In a multiple-input and single-output (MISO) system, if the channel state information (CSI) is available at the transmitter, one can achieve both the diversity and array gains with transmit beamforming, whereas only diversity gain can be realized with space-time coding. In this paper we focus our attention on MISO systems where CSI is conveyed from the receiver to the transmitter through a finiterate feedback link [1]- [4]. Optimum codebook design for ergodic capacity loss, a system performance metric, is proposed in [1]. In [3], the problem is studied from a source coding perspective by formulating the finite-rate quantized MISO system as a general vector quantization problem. By utilizing the high-resolution distortion analysis of the generalized vector quantizer, tight lower bounds of the ergodic capacity loss of a quantized MISO system over i.i.d and correlated fading channels with both optimal and mismatched channel quantizers were obtained [3].Average SEP, another important system performance metric, for limited set of constellations has been studied with i.i.d fading channels based on approximating the statistical distribution of the key random variable that characterizes the system performance. Specifically both [1] and [2] characterized the absolute amplitude square of the inner product between the channel direction and its quantized version as a truncated beta distribution and used it to study effect of quantization on average SEP. Similar to the capacity analysis, SEP analysis for correlated channels using such statistical methods have not met with much success. In this paper we make use of the source coding based framework developed in [3] to study the average SEP loss in correlated Rayleigh fading channels with rectangular M -QAM constellation. The application of the theory in [3] to this problem is quite involved because of the complicated dependency of the objective function on the random variables involved and the results derived here serve to validate the general nature of the theory [3]. In addition, the results provide interesting insight into the more general and useful scenario of correlated channels with a more