MIMO (Multiple Input Multiple Output) communications systems equipped with array antennas at both the transmitter and receiver sides are a promising scheme to realize higher rate and/or reliable data transmission. In this paper, capacity analysis of MIMO Rayleigh channel with spatial correlation at the receiver of multipath taken into account is presented. In general, a model configuration of local scattering around a mobile station in MIMO environment is carried out by simulation to examine spatial correlation coefficients. Based on statistical properties of the eigenvalues of correlated complex random Wishart matrices, the exact closed-form expressions of distribution of the eigenvalues are investigated. Then, the general closed-form evaluation of integral form is proposed based on Meijer's G-function. The results demonstrate that the ergodic capacities are improved by increasing the number of the antennas and the SNR's. Compared with i.i.d. (independent identically distributed) Rayleigh channel, the incremental improvement of correlated Rayleigh channel is reduced by spatial fading correlation. The analytical results validated by Monte-Carlo simulations show a good agreement.