Three-dimensional (3D) acquisition is beneficial for functional MRI (fMRI) compared to two-dimensional (2D) acquisition since it can provide higher spatial resolution, resulting from potentially higher temporal signal-to-noise ratio (tSNR) and thinner slices. However, 3D has higher physiological noise due to higher signal at the center of k-space, which results in lower tSNR. The number of slices can be decreased to reduce physiological noise. However, a small number of slices in Fourier encoding results in Gibbs ringing. In this study, we show that 3D Hadamard acquisition avoids Gibbs artifacts while increasing SNR compared with conventional 2D and 3D methods.