Space division multiplexing (SDM) technique is proposed to augment performance of short-reach optical transmission systems by utilizing 8-core multicore fiber (MCF) that typically degrades at high data rates for higher order modulation. Intercore crosstalk (XT) and higher order modulation format are the most challenging impairments of SDM based interconnection technology for efficient usage of MCF as OI. To satisfy the capacity requirements of emerging heterogeneous and bandwidth-intensive short reach communication links a frequency interleaving scheme is applied to MCF OI transmission systems. The negative effects of spectral overlap and intercore XT is reduced by shifting channel frequencies between adjacent cores. To combat explosive growth in data volume requirement of next generation highperformance short-reach OIs transmission higher order quadrature phase shift keying (QPSK) modulation in index profiled MCF system is proposed. Digital signal processing such as multiple input multiple output (MIMO) equalization are used to evaluate the symbol error probability in QPSK modulated SDM system.