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This letter provides a novel iterative adaptive frequency-domain equalization for time-varying underwater acoustic (UWA) channels. The proposed scheme adopts a modified frequency-domain block least mean square algorithm to update the filter weights. A sliding window strategy is developed to deal with the rapid time-varying characteristics of UWA channels. The proposed method enhances the performance through an iterative structure. Experimental results show that the bit error rates of the proposed method can be one order of magnitude lower than those of conventional schemes.