In this paper, we introduce a novel merger of SDMA and CDMA systems. In order to examine the potentialities of this merger, the performance of the conventional SDh4A is investigated. A new scheme called Dynamic Space Code (DSC) signature that can enhance the system capacity is presented and analyzed in various scenarios. This scheme is form by inserting an orthogonal code which origin from CDMA system into each SDMA user to create more transparent signature scheme to distinguish each mobile user. The properties of LinkAir Communications' large area synchronous (LAS) or smart codes, which are claimed to be fully orthogonal code and are used to combat major interferences, are studied. Finally, all system performance in term of carrier to interference ratio (C/I) is presented.0-7803-8523-3/04/$20.00 02004 IEEE.