An improved method is provided for reducing inter-carrier interference in the CDMA subchannels of hybrid OFDMA-CDMA systems. The results of decoding OFDMA tones are used to at least partially cancel interference from CDMA tones. Then, the CDMA tones are decoded. In specific embodiments, control information is obtained by an initial step of decoding the CDMA tones. The control information is used in decoding the OFDMA tones. Then, the decoding of the OFDMA tones and the decoding of the CDMA tones are performed iteratively, such that at least one instance of OFDMA decoding is used to cancel interference from the CDMA tones, and at least one instance of CDMA decoding is used to obtain improved control information for decoding the OFDMA tones.