In adaptive modulation system with transmit power constraint due to limited constellation the actual transmit power is always less than the given power.Spectral efficiency can be improved by utilizing this residual power.This paper investigated power and bit adaptation in MIMO systems and proposed an adaptation algorithm with spatial-domain residual power reallocation.Simulation results show that applying equal power allocation and then reallocation residual power in spatial domain can improve spectral efficiency.This is of low complexity and easy to implement.