Abstract: In this paper, we study the error performance of Vertical Bell Labs layered Space-Time (V-BLAST) system using Maximum Likelihood (ML) receiver in the presence of correlated fading channel. Our analysis is based on the channel model of Virtual Channel Representation (VCR) form, which considers both the local scatters and non-local scatters. The Pairwise Error Probability (PEP) expression over VCR channel model is derived exactly. The approximated expression of the PEP for high signal-to-noise ratio (SNR) region is used to analyze the characteristics of the diversity order. Simulation results are given to corroborate the theoretical analysis.