In this research, we have developed a multiple-input multiple-output (MIMO) multipath fading channels based antenna for indoor compact MIMO applications. In this research, we have simulated the proposed antenna using MATLAB environment. A detailed performance analysis has been performed by taking various performance parameters in account for indoor and outdoor wireless local area networks (WLAN). The proposed MIMO antenna is developed for WLAN applications in the bandwidth of 2.45.0. Our simulation results found the best size of compact MIMO antenna, which is 29.7 mm length and 38.03 mm length for all WLAN frequencies. The antenna for 5.0 GHz band only would be the smallest one when compared to the other frequencies. It is also observed that the radiation resistance and Gain decreases with the rise in the frequency, whereas efficiency marginally decreases on the edge frequency bands on both higher and lower levels. Efficiency gives its highest performance values with 3.0GHz frequency band. Character Impedance stays almost constant in all of the experiments.