This paper investigates the performance of quadrature partial response signaling (QPRS) scheme in a multipath fading channels, with emphasis on microcellular radio channel. The channel is assumed to be Rician fading channel subject to cochannel interference. Perfect synchronization has been assumed. The results are compared with that of the quadrature phase shift keying (QPSK) subject to the same environments. For QPSK a raised-cosine pulse of 0.235 roll-off factor has been used with a corresponding spectral efficiency of 1.62 b/s/Hz. The effect of cell splitting and cell sectorization are also considered. Performance is derived and computed analytically in terms of the bit error probability as a function of the number of time division multiplexing (TDM) users in the digital microcellular radio channel. Results show that the QPRS scheme performs better than the QPSK signaling scheme whenever the transmission is subject to multipath fading and cochannel interference, which is the case for microcellular radio channels