SummaryFading, interference, and collisions cause unpredictable data loss in a wireless channel. In the recent past, the use of polar codes for error detection and correction scaled downed the data error rate considerably. With the introduction of 5G mobile network, minimizing the data loss and enhancing the performance becomes imperative. Here, the use of polar codes based OFDM‐HARQ mechanism with CRC is simulated and implemented. The proposed technique was tested for various fading channels. A bundling mechanism is used to attain the optimal number of retransmissions to accomplish better frame dropping ratio and throughput. It has been observed that the bit error rate of the proposed system has improved by optimizing Eb/No and bandwidth. At this optimum setting, the bit error rate has been enhanced by 25%. At the same time, the system optimizes retransmission count to a value of three, which improves frame error rate at the desirable bit error rate of 10−6. Further, the use of the proposed optimized polar code reduces complexity computations from one third to one fifth as compared to conventional system modeling using turbo codes. An enhancement in frame dropping ratio by 8% to 12% as well as throughput by 10.23% to 14.33% is achieved. The work carried on the hardware system shows that data loss in the OFDM‐HARQ communication system can be minimized by improving the bit error rate and throughput required for device‐to‐device communication in the 5G network.