In this paper,. with the aim of achieving the expected performance improvement for a polarization diversity system, we analyzed two-branch polarization diversity at the receiving end of a mobile link which a transmitter emits circularly polarized wave. In this analysis, to calculate the correlation coefficient considered by XPD(cross polarization discrimination) between the two received signals, a simple theoretical model of circular polarization diversity is adopted. From the analysis results, it is clearly seen that the correlation coefficient of circular polarization diversity evaluated by the XPD is less than that of conventional linear polarization diversity. And also, we designed and implemented a circular polarization diversity system with micro-strip antenna. By using the circular polarization diversity system, we analyzed the measured data in indoor NLOS(Non-Line-Of-Sight) environments. From this analysis results, it is also clearly seen that the diversity effect of circular polarization diversity system shows better performance compared to the conventional linear diversity system by about 3 dB high.