The shaped offset quadrature phase shift keying (SOQPSK) signal is demodulated by using polarization diversity receiving technology since the fact that satellite communication is featured with limited power, limited bandwidth, and power amplifier nonlinearity. Taking advantages of constant envelope and high frequency spectrum efficiency of SOQPSK partial response signal SOQPSK-TG,the demands of modern satellite communication are satisfied. Introduction of polarization diversity reception technology can make the relatively independent multipath signals experience fading compensate with each other and improve the output signal noise ratio(SNR) through the diversity gain by maximum ratio combining (MRC).The simulation results show that the proposed algorithm can get 5—10 dB average SNR gain in comparison with the traditional single channel demodulation with the limit of 20 dB maximum fading depth. The algorithm can also overcome theimpact of deep nulls in single channel demodulation and effectively solves the communication interrupt problem caused by satellite attitude changes, improving the systemperformance significantly.