The document presents the design of a novel compact two-element multiple-input multiple-output (MIMO) antenna system with improved isolation for wireless local area network applications. A microstrip patch antenna is designed to resonate at 5.4 GHz with good return loss characteristics. This antenna is then used to develop a 2x2 MIMO antenna array with an isolation of -31 dB between the two antennas. Surface current distributions and radiation patterns of the proposed MIMO system are also analyzed. The developed antenna system offers high isolation between closely spaced antenna elements, making it suitable for applications requiring MIMO technology.