Abstract: In Rayleigh fading environments,this paper addresses the issue of multiple-input multiple-output(MIMO)channel capacity under co-channel interference, and focuses on the case with transmit spatial correlation for the desired user.It is assumed that perfect channel state information(CSI)is available to the receiver,but unavailable to the transmitter.Based on theory of matrix variate distributions,this paper first derives an exact closed-form expression of the moment generating function(MGF)of mutual information of MIMO channels with interference,and then obtains an exact expression of the MIMO ergodic capacity by using the MGF formula of mutual information.Finally,numerical results are present to illustrate the mathematical formalism and to show the effect of various parameters on the ergodic capacity. This paper emphasizes applications of matrix variate distribution theory to the study of MIMO channel capacity.