Antenna selection in MIMO system can be considered as a generalization of the selection diversity, where an arrangement of antennas with the maximum instantaneous channel gains is selected. It reduces the hardware complexity of transmitters and receivers by utilizing fewer RF chains than the quantity of antenna elements. Antenna selection has been investigated from different angles, however, its coexistence with decoupling networks needs further investigation. In this paper we present the performance analysis of antenna selection algorithm with decoupling network in MIMO system. Mutual coupling between monopole array is characterized by the receiving mutual impedance method to formulate the decoupling network operating matrix and design. We explore system performance before and after decoupling process in a standard MIMO channel, where it is assumed that fading is correlated at the receiving side and uncorrelated at the signal source. Measurement results indicate that output voltages of decoupling network can effectively be removed off the coupling effect. Error performance and channel capacity evaluation also demonstrate the promising potentials of antenna selection algorithm with efficient decoupling scheme in MIMO system.