The present disclosure relates to a fifth generation (5G) or pre-5G system to be provided to support a higher data transmission rate since fourth generation (4G) communication systems like long term evolution (LTE). A system and method for compensating phase noise of a terminal in support of the system is provided. The method includes measuring first channel state information (CSI) using a reference signal transmitted from a base station, estimating second CSI from the first CSI using a first type reference signal for compensating a common phase error (CPE) and a second type reference signal for compensating the CPE and inter carrier interference (ICI), and feeding back the estimated second CSI to the base station.