In this treatise, we introduce a novel polarization modulation (PM) scheme, where we capitalize on the reconfigurable polarization antenna design for exploring the polarization domain degrees of freedom, thus boosting the system throughput. More specifically, we invoke the inherent properties of a dual polarized (DP) antenna for transmitting additional information carried by the axial ratio (AR) and tilt angle of elliptic polarization, in addition to the information streams transmitted over its vertical (V) and horizontal (H) components. Furthermore, we propose a special algorithm for generating an improved PM constellation tailored especially for wireless PM modulation. We also provide an analytical framework to compute the average bit error rate (ABER) of the PM system. Furthermore, we characterize both the discrete-input continuous-output memoryless channel (DCMC) capacity and the continuous-input continuous-output memoryless channel (CCMC) capacity as well as the upper and lower bounds of the CCMC capacity. The results show the superiority of our proposed PM system over conventional modulation schemes in terms of both higher throughput and lower BER. In particular, our simulation results indicate that the gain achieved by the proposed Q-dimensional PM scheme spans between 10dB and 20dB compared to the conventional modulation. It is also demonstrated that the PM system attains between 54% and 87.5% improvements in terms of ergodic capacity. Furthermore, we show that this technique can be applied to MIMO systems in a synergistic manner in order to achieve the target data rate target for 5G wireless systems with much less system resources (in terms of bandwidth and the number of antennas) compared to existing MIMO techniques.