A polarization diversity planar inverted-F antenna (PIFA) on portable telephone in the practical use near the operator's body is investigated at 1,800 MHz under multipath urban environment. The antenna structure comprises a center-fed square patch with one permanent short-pin and two RF-switches on three corners. The RF-switches perform as the polarization branch switches for dominantly vertical polarization (VP) or dominantly horizontal polarization (HP) modes. The radiation efficiency of the polarization diversity PIFA is 58% and 53% for VP and HP modes, respectively, which is higher than the 52% efficiency of the reference λ/4 monopole antenna under the same condition. The mean effective gain (MEG) of VP and HP modes decrease with respect to the increasing cross-polarization power ratio (XPR). The correlation coefficient of two diversity branches is between 0.66 through all the possible XPR ranging from -10 dB to +10 dB. The diversity gain is computed from the MEG and correlation coefficient to determine the diversity antenna gain (DAG). The diversity gain, based on 10-3 BER for selective combining, is 7.5 dB over non-diversity reception. The DAG is -1.2+2.8 dBi which is approximately 4 dB lower than the case without human body. In other words, the presence of the human body degrades the communication performance by a half.