Orthogonal frequency division multiplexing (OFDM) is emerging as preferred modulation scheme in modern high data rate wireless communication systems. A well known problem of OFDM system is sensitivity to frequency offset between the transmitted and received signals, which may be caused by Doppler shift in the channel or by the difference between the transmitter and receiver local oscillator frequencies. This carrier frequency offset causes loss of orthogonality between sub carriers and the signal transmitted on each carrier are not independent of each other, leading to inter carrier interferenceIn this paper, the effects of ICI have been analyzed and two solutions to combat ICI have been presented. The first method is a self cancellation scheme, in which redundant data is transmitted onto adjacent subcarriers such that the ICI between adjacent sub carriers cancels out at the receiver. The other technique the Extended Kalman Filter (EKF) method statistically estimate the frequency offset and correct the offset using the estimated value at the receiver.

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