Abstract-The main purpose of the smart antenna system is the selection of smart algorithms for adaptive array to estimate the Direction Of Arrival (DOA). By using Matrix Pencil (MP) algorithms the weight of the antenna array can be adjusted to form certain amount of adaptive beam to track corresponding users automatically and to minimize interference arising from others by introducing nulls in their direction. The interference can be suppressed and the desire signal can be extracted. One of the adaptive Matrix Pencil algorithm Least Mean Square Algorithm (LMS) is presented on this article using Uniform Circular Array (UCA) structure. Smart antenna incorporates this algorithm in coded form which calculates complex weights according to the signal environment. The efficiency of (LMS) algorithm is compared on the basis of normalized array factor and Root Mean Square Error (RMSE) for mobile communication. The results demonstrate clearly that the Matrix Pencil investigate in this work is more accurate and stable compared to the published measure.Keyword-Smart Antenna, DOA, LMS, MP, RMSE, UCA I. INTRODUCTION Smart antenna has been widely used in many applications such as radar, sonar and wireless communication systems. Considerable research efforts have been made to estimate the direction of arrival (DOA) and various array signal process techniques for DOA estimation have been proposed. In particular, the DOA estimation for uniform circular arrays (UCAs) has been developed in these scenarios, which desired all-azimuth angle coverage. By the virtue of their geometry, UCAs are able to provide 360°of coverage in azimuth plane. Moreover, they are known to be is isotropic. That is, they can estimate the DOA of incident signal with uniform resolution in the azimuth plane. In addition, direction patterns synthesized with UCAs can be electronically rotated in the plane of the array without significant change of beam shape [1]- [4].There are various methods to estimate the angle of arrival (DOA) of radio signals on the antenna array. DOA estimation techniques can be broadly divided into three different categories namely; conventional methods subspace based methods and maximum likelihood methods. Convolution methods are based on the concepts of beam forming and null steering, but it requires a large number of elements to provide high resolution. Examples of this method are delay and sum and Capon's minimum variance method [2].One major limitation of this method is poor resolution that is its ability to separate closely spaced signals. Unlike conventional methods, subspace methods exploit the information of the received data resulting in high resolution. Two main subspace based algorithms are Multiple Signal Classification and Estimation of Signal Parameters via Rotational Invariance Techniques.The DOA algorithms are classified as quadratic (non subspace) type and subspace type. The Barltett and Capon (Minimum Variance Distortion less Response) [3] are quadratic type algorithms. Both methods are highly dependent on physical size ...