A compact built-in handset antenna for multiple-input multiple-output (MIMO) system at 2 GHz, comprising two elements array of newly proposed L-shaped folded monopole antenna (LFMA), is evaluated under the multipath radio wave propagation environments. By analyzing the fundamental characteristics, mean effective gain (MEG), correlation, and channel capacity, the significant enhancement in the capability, as a handset MIMO antenna under practical use conditions, was confirmed. The performances were also compared to those of an array antenna comprising two planar inversed-F antenna (PIFA) elements in order to verify the effectiveness of the proposed antenna. The results show that the equivalent or improved performances can be realized, by using the proposed LFMA array with a compact size, taking only the volume of 44% of a PIFA array. The LFMA array provides almost the same bandwidth and enhanced isolation compared with a PIFA array, and the sufficiently low correlation and acceptable effective gain are obtained under the multipath radio wave propagation environments. In addition, a greater channel capacity than a PIFA array is achieved especially when the proposed LFMA array is inclined for the display-viewing mode, and moreover, an almost doubled increase in the channel capacity is obtained by using MIMO transmission compared with single-input single-output (SISO). This study also show that the MEG has much effects on the channel capacity, rather than the correlations, for the proposed antenna.