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A Time Hopping Pulse Spacing Modulation (TH-PSM) system, which combines the pulse position modulation system with code shift keying, is proposed. The following performances are analyzed; (1) data transmission rate, (2) error rate in a single-user case, (3) error rate in a multi-user case, and (4) spectral efficiency. Consequently, the data transmission rate of the proposed system is higher than that of the conventional Spread Spectrum Pulse Position Modulation (SS-PPM) system. The proposed system can improve the probability of block error by increasing the number of information bits per spreading code. Moreover, the spectral efficiency of the proposed system is higher than that of the conventional system. The proposed system is more attractive than the conventional SS-PPM system for optical communications, power-line communications, and UWB communications.