Spatial Multiplexing is a technique used in wireless communication to increase data transmission rates. It works by sending multiple data streams simultaneously over the same frequency channel, utilizing different spatial paths. This is achieved through multiple antennas at both the transmitter and receiver, allowing for more efficient use of the available bandwidth. By leveraging the unique characteristics of the environment, such as reflections and scattering, Spatial Multiplexing can significantly enhance the capacity of a communication system. This method is commonly employed in modern technologies like MIMO (Multiple Input Multiple Output) systems, which are integral to 4G and 5G networks.