Block-coded modulation codes are generally constructed from Hamming distance block component codes by using the multilevel coding method proposed by Imai and Hirakawa. The multilevel coding method is a powerful technique for constructing BCM (or TCM)codes systematically with arbitrarily large distance parameters for AWGN channels. The multilevel structure of the multilevel BCM codes allows the use of multistage decoding procedures the provide good tradeoff between error performance and decoding complexity. In this thesis ,we generalize the concept of set partitioning of a signal set to a block modulation code. A new coding system is proposed. Simulation results and analysis are given to verify the performance.