Aspects of a method and system for rate selection algorithm to maximize throughput in closed loop multiple input multiple output (MIMO) wireless local area network (WLAN) system are provided and may comprise computing a maximum number of binary bits to be simultaneously transmitted via an RF channel based on signal quality. A modulation technique may be selected based on the computed maximum, communicating feedback information comprising the selected modulation technique. Subsequently transmitted data may be received via an RF channel which is modulated based on the feedback information. Another aspect of the method may comprise receiving feedback information comprising at least one of a selected modulation technique and coding rate via an RF channel, and transmitting subsequent data via said at least one of a plurality of RF channels which either modulated, or coded, based on the feedback information.