In this paper, we propose a novel scheme for physical-layer network coding (PNC) in multiway relay channels (MWRC) from the perspective of sequential multiuser detection. We consider an uplink MWRC scenario where N users, each equipped with a single antenna, simultaneously transmit their signal to a relay equipped with K antennas (K < N ). Extraction of the network codes from the superimposed user signals at the relay node is formulated as an under-determined linear system. To solve this problem with low decoding complexity, the proposed method combines successive interference cancellation (SIC) with Babai estimation for regularized integer least squares (ILS). Specifically, SIC decoding is first employed to detect a selected subset of stronger user signals and remove their interfering effects. Babai estimation is then applied to extract the remaining user signals, which is formulated as an ILS problem with reduced dimension. We develop a power allocation scheme to enhance the performance of both SIC and ILS steps, and discuss an optimal user pairing strategy based on the average decoding error probability. Numerical results demonstrate the performance improvement of the proposed method in extracting network codes from multiple superimposed user signals.INDEX TERMS Babai estimation, multiway relay channel (MWRC), physical-layer network coding (PNC), successive interference cancellation (SIC).