Summary: We introduce a differential space-time block code (DSTBC) integrated with trellis coded modulation with two transmit antennas. Our scheme enables transmission of DSTBC encoded symbols as trellis metric rather than concatenating an outer code. Unlike conventional DSTBC, different transmit symbol phase rotations are used for each transmit antenna in order to obtain more options for trellis branch. The set partitioning for proposed codes is derived as well. The decoder computes decision statistic using Viterbi Algorithm with different number of states undergoing Rayleigh fading channels. This approach can provide full diversity gain as well as coding gain simultaneously remaining full transmit rate, which cannot be obtained by conventional DSTBC.