A system employs a modified Jakes' fading model to generate a fading signal having substantially equivalent autocorrelation values for in-phase (I) and quadrature-phase (Q) components. A Walsh transform may be applied to generate multiple, uncorrelated I and Q components, for multiple fading signals. A complex Rayleigh fading signal according to the modified complex Jakes fading model is provided by a generator having M pairs of I and Q paths. Each pair of I and Q paths includes a corresponding complex carrier generator 201 (M an integer and 1.ltoreq.n.ltoreq.M) generating a complex carrier signal with frequency, .omega..sub.n, where .omega..sub.n is cos ((4n-3.pi.)/4M). Each of the I paths has a circuit that separates the real component of the corresponding carrier signal to provide a real carrier signal cos (.omega..sub.n t). Similarly, each of the Q paths has a circuit that separates the imaginary component of the corresponding complex carrier signal to provide an imaginary carrier signal sin (.omega..sub.n t). The M output signals of the circuits for the I-paths may be summed in a corresponding adder to provide in-phase component r.sub.I (t) of the fading signal r(t). Similarly, the M output signals of the circuits for the Q-paths may be summed in a corresponding adder to provide the quadrature component r.sub.Q (t) of the fading signal r(t).