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This article examines the performance of Wavelet based Multi-User MIMO OFDM (MUMIMO WOFDM) systems and a comparison is made with classical FFT based multiuser MIMO OFDM system. Wavelet analysis has some strong advantages over fourier analysis, as it allows a time-frequency domain operation, allowing optimal resolution and flexibility. Wavelets have been satisfactorily applied in almost all the fields of wireless communication systems including OFDM which is a strong candidate for next generation of wireless system. In this paper, the performances of the ODFM system have been enhanced by using multiple antenna technique over rayleigh fading channel and an optimal beam-forming technique is used to deal with the multi user environment based on Signal-to-Leakage Ratio (SLR), but wavelet based OFDM outperforms FFT based OFDM in all the scenarios.