The study on the frequency estimation of a real sinusoid has been addressed in this article. Discrete‐Fourier‐transform (DFT)‐based frequency estimation always uses the maximum bin of DFT as a coarse estimation followed by a fine estimation algorithm, which computes a correction term to compensate for the initial frequency offset caused by the coarse estimation. To enhance the frequency estimation accuracy, a fine estimation algorithm based on DFT samples and fuzzy logic (FL) is proposed in this study. Firstly, a modified phase‐based algorithm is presented to estimate the sign of the correction term. Then, a main‐lobe coefficient and a side‐lobe coefficient are constructed using the amplitude of three spectral lines to calculate the correction term. A FL controller is utilised to generate a weighted factor to adjust the weight of the main‐lobe coefficient and the side‐lobe coefficient in the formula of the correction term. Compared with other existing fine algorithms, the proposed algorithm improves the correct probability of sign estimation by 10%–20%, and improves the estimation accuracy by 5%–8% at lower carrier‐to‐noise ratios (CNRs). In addition, the performance of the proposed algorithm is less affected by the initial frequency offset than other algorithms.