The CDMA mobile communication system may result in a many-fold increase in capacity over the current FDMA or TDMA system. The capacity of CDMA system is limited by interference only. In the previous research, the capacity has been computed on the assumption that the cell coverage area is the same as one identical hexagon(or a circle). In a soft handoff CDMA system, however, the cell coverage is larger than an identical hexagon. The capacity of a CDMA system considering increased cell coverage is evaluated in this thesis. In the terrestrial cellular telephony, the soft handoff area and capacity for various soft handoff parameter settings are evaluated in this thesis by simulation. This results can be effectively used to design a CDMA system considering the requirements for the capacity, soft handoff blocking area, and so on.