Design Methodology and Method and Apparatus for Signaling with Capacity Optimized Constellation Abstract Communication systems are described that use geometrically PSK shaped constellations that have increased capacity compared to conventional PSK constellations operating within a similar SNR band. The geometrically shaped PSK constellation is optimized based upon parallel decoding capacity. In many embodiments, a capacity optimized geometrically shaped constellation can be used to replace a conventional constellation as part of a firmware upgrade to transmitters and receivers within a communication system. In a number of embodiments, the geometrically shaped constellation is optimized for an Additive White Gaussian Noise channel or a fading channel. In numerous embodiments, the communication uses adaptive rate encoding and the location of points within the geometrically shaped constellation changes as the code rate changes.