Abstract: In the IEEE802.16d system，because the virtual carriers are used to provide guard bands，if the estimator is implemented based on DFT in this system，the estimation performance will be degraded due to the dispersive distortion of an estimated channel impulse response，this estimator can’t be directly implemented in the IEEE802.16d system.A novel enhanced DFT-based channel estimation is proposed which can improve estimator performance by simple LMMSE method to predict all pilot subcarriers in the frequency domain and zero insertion in the time domain.This paper simulates this algorithm based on IEEE802.16d system，simulation results show that the proposed method can well improve the DFT estimator performance in this system.