A method of channel estimation in a communication system includes the steps of: receiving at least one input signal associated with at least one data stream, the input signal having reference symbols and data symbols; processing the at least one input signal in a slot-wise manner; performing a channel estimation by taking at least one reference symbol per input signal into account, which is used to equalize the respective input signal and to assign the symbols to the at least one data stream, thereby generating a processed signal for each independent data stream, and processing further the processed signal while performing an additional channel estimation for each independent data stream, wherein the reference symbols and the data symbols are taken into account for the additional channel estimation. Further, a signal processing system is described.