Embodiments are provided to enable effective cancellation or reduction of the self-interference (SI) introduced when applying full-duplex (FD) transmission to Multiple-Input-Multiple-Output (MIMO) systems. A method embodiment includes forming, using a precoding matrix generated in accordance with channel conditions, a plurality of beams for a plurality of transmit signals and a plurality of self-interference cancellation signals corresponding to the plurality of transmit signals. The method further includes transmitting, at a plurality of antennas, the plurality of beams for the transmit signals, and receiving, via the plurality of antennas, a plurality of receive signals. A corresponding self-interference cancellation signal is then added to each of the plurality of receive signals to obtain a plurality of corrected receive signals, and the plurality of corrected receive signals are detected at a plurality of receivers.