Wireless communication is the most effective communication to convey audio or video information among the population. It enables the masses to connect throughout the world. Wireless technologies improve the lifestyle of individuals in rural and poor communication areas. In this view, the quality of a reliable signal can be enhanced by minimizing carrier interference. In this paper bit error rate of an image, signal is transmitted over fading channel is analyzed using orthogonal frequency multiplexing and channel estimation technique. An Orthogonal Frequency Multiplexing (OFDM) provides prominent bandwidth effectiveness and improved immunity to the fading environments. In OFDM, the data is modulated using multiple numbers of subcarriers that are orthogonal to each other. A cyclic prefix is infixed between OFDM symbols to annihilate the inter symbol interference (ISI) and inter-carrier interference (ICI). The least square channel estimation method is used to minimize the effect of multipath fading. An image, signal is modulated using BPSK, QPSK, 16QAM and 64QAM digital modulation schemes with OFDM and channel estimation and transmitted over AWGN and fading channel. The objective of this work is to improve the signal to noise ratio by reducing interference. The bit error rate vs. signal to noise ratio for BPSK, QPSK, 16QAM and 64QAM without channel estimation at 5dB is 0.4948, 0.4987, 0.4965 and 0.4983 and with channel estimation is 0.099, 0.2600, 0.3900 and 0.4300 respectively. The bit error rate obtained with BPSK, QPSK, 16QAM and 64QAM without channel estimation at SNR of 10dB is 0.4964, 0.4985, 0.4957 and 0.4982 and with channel estimation is 0.033, 0.19, 0.34 and 0.38 respectively. The bit error rate obtained with BPSK, QPSK, 16QAM and 64QAM without channel estimation at SNR of 15dB is 0.4938, 0.4985, 0.4953 and 0.4979 and with channel estimation is 0.0072, 0.1900, 0.3241 and 0.3762 respectively. The error rate is minimized with channel estimation. The error rate increases with the order of modulation and it is noticed that the error rate is minimum with the BPSK modulator and is maximum with 64QAM.