This paper proposes the OFDM system that uses circularly polarized waves for improving the system performance. The circular polarization has the characteristic that it cannot receive the waves which are reflected by odd times. Using this characteristic, a modified OFDM system that uses the cross-handed circular polarization(XCP-OFDM) is newly proposed. By using the characteristic of circular polarization, it is clearly seen that the system performance of XCP-OFDM can be improved to a great extent. This is due to a reduction of the interferences caused by reflected waves and inter-channel interference. Both theoretical analysis and system simulation results are described.