—An iterative algorithm employing decision feedback provided by either an equalizer or a channel decoder is proposed in order to compensate for the phase noise resulting from imperfect oscillators in orthogonal frequency-division multiplexing (OFDM) systems. In the proposed algorithm, the received OFDM symbol is partitioned into subblocks in the time domain and the estimate of the time-average of the phase noise at each subblock is used to compensate for the phase noise. A formula for the signal-to-interference-plus-noise ratio (SINR) after phase noise compensation is derived and its values are evaluated under a variety of conditions in order to demonstrate the efficiency of the proposed algorithm. Numerical results show that the proposed algorithm achieves performance close to that of an OFDM system without phase noise over a wide range of conditions, while requiring only one-half the complexity of the partial intercarrier interference reduction algorithm.