A high-order Multiple-Input-Multiple-Output (MIMO) transmitter implementing a covariance-based precoding scheme that exploits transmit channel correlation and a method of operation thereof are provided. In one embodiment, covariance-based precoding is performed at the high-order MIMO transmitter based on feedback from a remote high-order MIMO receiver regarding a covariance-based precoding matrix. The covariance-based precoding matrix is, or is derived from, a transmit channel correlation matrix determined by the high-order MIMO receiver for the high-order MIMO transmitter. The covariance-based precoding provides a beam-forming effect when there is a relatively high degree of transmit channel correlation, thereby improving performance of the high-order MIMO transmitter. Further, because changes in the transmit channel correlation occur relatively slowly over time, feedback overhead requirements are substantially reduced as compared to that required for traditional MIMO precoding schemes.