Inter satellite optical wireless communication (IsOWC) is an emerging transmission technology which is capable of transporting high-speed data between two satellites estranged in outer space and revolving in the same or different orbits. IsOWC links have been considered very crucial for the purpose of providing global coverage for information transmission throughout the world. This work reports the modeling and performance investigation of a novel hybrid wavelength division multiplexing–polarization division multiplexing based IsOWC transmission system incorporating an orthogonal modulation scheme combining carrier suppressed return to zero–differential quadrature phase shift keying–polarization shift keying formats to transmit three independent 40 Gbps data streams simultaneously at different signal parameters. The results show a successful transmission of 3.84 Tbps information over 58,000 km link range with acceptable Q Factor (> 6 dB) and BER (≤ 10⁻⁹) using the proposed system. The performance comparison of the proposed system with existing work has also been discussed in this paper.