Filter bank multicarrier (FBMC) based on offset quadrature amplitude modulation (OQAM) is regarded as the prospective system for mobile communication. To utilize the potential of the system, the issues like carrier frequency offset have to be investigated extensively. The modulations in the multicarrier system draw a great interest among researchers and engineers in the telecommunication field. Despite the OFDM advantages, significant disadvantages in the system enable researches to approach into efficiently evolved FBMC system. In this paper, the detrimental effects caused by carrier frequency offset on the received signal is considered. Carrier Frequency Offset (CFO) compensation has been effectively undertaken by modified Kalman filtering. The compensation technique not only depends on the specific FBMC modification but also influenced by the selected receiver. A comprehensive analysis of the frequency offset response under three conditions (without offset, with offset, and the compensated samples) has been performed in the proposed system with performance measures as bit error rate (BER) and signal-to-noise ratio. 9 CFO compensation is analyzed by varying the channel characteristics (additive white Gaussian noise [AWGN] and Rayleigh Fading) and subcarrier filtering (prototype filter, Gaussian filter, and root-raised coefficients). From the overall analysis, it is observed that the BER varies from 0.1 to 0.001.