Abstract-We propose and investigate a precoding-aided spatial modulation (PSM) scheme, which can simultaneously achieve transmit and receive diversity and, hence, is referred to as the TRD-PSM scheme. In TRD-PSM systems, information is transmitted jointly using an amplitude-phase modulation (APM) and a receive antenna based space-shift keying (SSK) modulation. We consider two types of linear precoders, namely transmitter zero-forcing (TZF) and transmitter minimum mean-square error (TMMSE), so as to facilitate low-complexity signal detection. In order to satisfy the different requirement for complexity and reliability, we introduce/propose a range of detection algorithms, which include joint maximum likelihood detector (JMLD), simplified JMLD, successive MLD (SMLD), simplified SMLD, and ratio threshold test assisted MLD (RTT-MLD). We address the principles, characteristics, complexity and performance of these detection algorithms. Furthermore, we analyze the average bit error probability (ABEP) of the TZF-and TMMSE-assisted TRD-PSM systems employing respectively the JMLD and simplified JMLD and at both small-and large-scale. Finally, numerical and simulation results are provided to demonstrate and compare the achievable performance of TRD-PSM systems employing various precoding and detection algorithms, as well as to validate the formulas derived.