Atmospheric optical communication (AOC) system using subcarrier PSK modulation is proposed and its superiority to OOK modulation in the presence of scintillation is discussed theoretically. An experimental AOC setup with a subcarrier modulated by 155.52(Mb/s) DPSK at light wave-length λ=0.83(µm) over an 1.8(km) outdoor path is employed to show the performance. Theoretical and experimental results are compared under scintillation in clear weather and a good agreement is observed. Finally, AOC systems using subcarrier M-ary PSK and multiple subcarriers are proposed and discussed.