To meet the needs of wireless sensor network with MIMO technology, the cooperative MIMO system is built based on cluster and the transmission process is analyzed. To resolve the problem of error propagation caused by the transmission between the head node and the cooperative node in the same cluster, the cooperative MIMO system concatenated LDPC coding is designed and the realization process of layered decoding algorithm is analyzed in detail. The error performance under the same signal-to-noise ratio with different antenna number and the error performance of the different signal-to-noise ratio with same antenna number between the cluster head node and cooperative nodes are simulated. Besides, the performances of the cooperative MIMO system concatenated LDPC coding with two transmitters and one receiver, and with two transmitters and two receivers are simulated, which can be extended to system with multiple transmitters and multiple receivers. The simulation results show that the cascaded LDPC coding cooperative MIMO system can effectively solve the problem of error propagation in cooperative MIMO system. Meanwhile the LDPC layered decoding algorithm is used at the receiving end, compared with conventional BP decoding, in the same simulation conditions, convergence is faster and error correction performance is better.